The most fundamental types of factors leading to the continuous rise of agricultural products can be divided into three types. 1. Consumer inflation is mainly caused by the imbalance between supply and demand of commodities. 2. Monetary inflation is mainly caused by the increase in currency in circulation causing imbalance and leading to inflation. 3. Imported inflation, mainly caused by the rise in prices of important strategic commodities such as oil, leads to inflation.
my country’s inflation is related to these three aspects, but the most important one is the second type of inflation! Let me explain below
1. The trigger of the current inflationary outbreak in our country is the first type of inflation. The main reason is that the insufficient supply of agricultural products has caused the prices of agricultural products to rise sharply, leading to conflicts between the supply and demand of agricultural products in the market. We know that agricultural products are related to national livelihoods, and their continuous rise leads to the continuous rise of CPI. This is the cause of this round of inflation.
2. Agricultural products are an inducement, but rising prices of agricultural products are not the fundamental factor. The fundamental factor is that my country's economy is overheating and basic investment has increased sharply, resulting in a continuous increase in currency in circulation, which has caused the current inflation to develop towards comprehensive inflation. Therefore, too much money in the market is the root cause, so the country must implement a tightening monetary policy
3. Imported inflation factors cannot be ignored. The skyrocketing prices of international grain, fertilizer, and oil are also important factors. Grain and oil are strategic commodities related to the survival of the country. The price of oil has skyrocketed more than four times from US$30 to the current US$140, and my country is the world's second largest oil consumer. The sharp increase in oil import prices has led to an increase in the price of my country's industrial products. This part must be passed on to consumption. on the person. This is also one of the reasons leading to inflation in my country's agricultural products.
The above is my discussion! Thank you