1. Supply chain problem Supply chain is the whole process of goods from production to sales, involving raw materials, production, warehousing, logistics and other links. In the whole supply chain, problems in any link may lead to price increases. For example, when the new epidemic broke out last year, factories and logistics centers all over the globe were affected to varying degrees, resulting in a shortage of raw materials, spare parts and other supplies. These shortages, in turn, have hindered the production of many manufacturers, thus affecting the supply of goods. As the supply decreases, the price will go up.
2. Rising costs Apart from the supply chain problem, rising costs are also one of the reasons for rising prices. The rising cost includes labor cost, logistics cost and raw material cost. With the changes in the supply and demand situation in the labor market, the wages and benefits of workers are constantly improving, which further leads to rising costs. The cost of logistics is also rising, partly because of the rising cost of fuel. In terms of raw materials, the rising prices of metals such as copper and aluminum have also directly affected the manufacturing industries such as electrical appliances and automobiles.
3. Market demand Changes in market demand will also affect the trend of prices. If demand increases and supply is insufficient, prices will rise. And when the demand drops, the price will also drop. During the epidemic period, with the change of people's lifestyle, the demand for different types of goods has changed. For example, due to people staying at home, the demand for online shopping has increased greatly, and the logistics pressure on e-commerce platforms has also increased, which has led to an increase in logistics costs. In catering, tourism and other industries, due to the decline in demand, prices have also dropped accordingly.
4. Macroeconomic environment The macroeconomic environment is also one of the important factors that affect prices. During the epidemic period, the global economy was hit to varying degrees, and the economies of many countries stagnated or slipped, which also led to a decrease in the supply of some commodities, which in turn pushed up prices. In addition, the monetary easing policies implemented by some countries will also lead to inflation of goods, thus pushing up prices.
5. Broken supply chain During the epidemic period, the supply chain of many enterprises was affected due to export restrictions and traffic control systems in some countries, which led to a decrease in the supply of raw materials and parts, thus affecting the production and supply of some commodities. This is also one of the important reasons for the price increase of some commodities.