Current location - Recipe Complete Network - Catering franchise - Why will the price increase, what is the basis?
Why will the price increase, what is the basis?
1. Supply Chain Problems The supply chain is the whole process from production to sales of commodities, involving raw materials, production, storage, logistics and other links. In the whole supply chain, problems in any one of the links may lead to price increases. For example, during the outbreak of the New Crown Epidemic last year, factories and logistics centers around the world were affected to varying degrees, resulting in shortages of raw materials, parts and other supplies. These shortages in turn led to production disruptions for many manufacturers, which in turn affected the supply of goods. As a result of this reduction in supply, prices rise.

2, rising costs In addition to supply chain problems, rising costs are also one of the reasons for the rise in prices. Cost increases include labor costs, logistics costs, raw material costs and other aspects. With changes in the supply and demand situation in the labor market, the wages of workers are also increasing, which further leads to rising costs. Logistics costs are also on the rise, partly due to higher fuel costs. Raw materials, such as copper, aluminum and other metals, have risen in price, also directly affecting the electrical appliances, automotive and other manufacturing industries. 

3, market demand changes in market demand will also affect the price trend. If demand increases and supply is insufficient, prices will rise. And when demand falls, prices will also fall. During the epidemic, the demand for different types of goods changed as people's lifestyles changed. For example, demand for online shopping increased dramatically as people stayed out of their homes, and the logistics pressure on e-commerce platforms increased, leading to higher logistics costs. In the catering and tourism industries, prices have fallen accordingly as demand has dropped. 

4. Macroeconomic environment The macroeconomic environment is also one of the important factors affecting prices. During the epidemic, the global economy was hit to different degrees, with many countries experiencing economic stagnation or decline, which led to a reduction in the supply of some commodities, and in turn pushed up prices. In addition, the monetary easing policies implemented by some countries also led to inflation, which in turn pushed up prices.

5. Supply chain disruption During the epidemic, due to export restrictions and traffic control in some countries, the supply chain of many enterprises was affected, leading to a reduction in the supply of raw materials and components, thus affecting the production and supply of some commodities. This was one of the major reasons for the rise in the prices of some commodities.