I. Supply chain issues
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.
Second, rising costs
In addition to the supply chain problem, the rising cost is also one of the reasons for the rising price. 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.
Third, the 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.
Fourth, the macroeconomic environment
The macroeconomic environment is also one of the important factors affecting 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.
V. Broken supply chain
During the epidemic period, due to export restrictions and traffic control systems in some countries, the supply chain of many enterprises was affected, resulting in a decrease in the supply of raw materials and components, thus affecting the production and supply of some commodities. This is also one of the important reasons for the price increase of some commodities.
Six, asset prices rose.
During the epidemic period, due to the uncertain economic situation, some investors turned their assets to safe investments, such as gold and real estate. The demand for these safe assets has increased, which has pushed up their prices. This also indirectly affects prices, especially some commodities related to real estate, such as furniture and building materials.
VII. Policy adjustment and control
Policy adjustment and control is also one of the important factors affecting prices. During the epidemic, many countries implemented some economic stimulus policies, such as lowering interest rates and increasing fiscal expenditure. Although the implementation of these policies will help stimulate economic growth, it may also lead to inflation of goods, which in turn will push up prices.