1, monetary policy
Monetary policy is an important factor affecting prices. When the money supply increases, the value of money will decline and inflation will occur; On the contrary, when the money supply decreases, the value of money will rise and deflation will appear, which will lead to pushing up prices.
2. Supply and demand
The relationship between supply and demand is the basic principle to determine commodity prices, that is, when supply exceeds demand, prices will rise; When supply exceeds demand, prices will fall. In the current market environment, supply faces various challenges, such as resource shortage, logistics problems and rising labor costs. And the demand is also expanding, leading to an increase in commodity prices.
3. Real life
In addition to supply and demand and monetary policy, there are also some factors that affect prices in real life. For example, natural disasters caused by climate warming will affect the production and supply of crops and food, and then affect the rise of food prices. In addition, the relationship between supply and demand in the labor market will also affect prices. With the rising cost of living and housing prices, labor costs are also rising, which will lead to an increase in production costs, thus pushing up commodity prices.
Combined with the current commodity prices on the market, it is not difficult to see that price increases have become a common phenomenon. Due to the comprehensive influence of various reasons, the trend of rising prices is also difficult to reverse. Therefore, we need to take some measures to mitigate the impact of rising prices.