Inflation: Rising Oil Prices and Climate Impact, What Are the Seven Reasons for Rising World Prices?
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| Inflation: Rising Oil Prices and Climate Impact, What Are the Seven Reasons for Rising World Prices? |
Everything from food to fuel to keep our homes warm is becoming increasingly expensive, not just in the UK but around the world.
Since 2018, the rate of global inflation has been at record levels. And here are some of the reasons:
Oil prices had declined since the beginning of the year, but since then demand has picked up and prices have reached a seven-year high.
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| Gas prices have also risen, and home heating bills are rising. |
The average price of gasoline in the United States is currently ڈالر 3.31 per gallon, up from 2. 2.39 a gallon a year ago. The same is true in Britain and the European Union.
Gas prices have also risen, and home heating bills are rising.
Rising demand from Asia has also pushed up prices. In addition, last year's severe cold in Europe also reduced gas reserves.
Nike and other companies have raised their prices due to rising costs in the supply chain.
Prices of many everyday items rose during the epidemic of code 19.
During last year's lockdown, people trapped in homes who could not go anywhere to restaurants or vacations bought plenty of household items and repairs.
Many industrialists in Asia have had to shut down due to code restrictions and are now trying to meet growing demand.
This has led to shortages of materials such as plastics, concrete and steel, which has pushed up prices. In 2021, the price of timber in the UK is 80% higher than usual and in the US this price has doubled.
Major US companies Nike and Costco have raised their prices due to rising costs in the supply chain.
There is also a lack of microchips, which are an important component of cars, computers and other household appliances.
Delivery costs
Global shipping companies, which carry goods around the world, are struggling to meet the post-epidemic demand.
This means that companies that sell goods have to pay a lot to get the goods to their stores. As a result, prices have risen and the burden has fallen on consumers.
The cost of shipping a 40-foot container from Asia to Europe is currently 17 17,000, or 12,480 pounds, 10 times more than a year ago. A year ago, the price was 15 1,500, or 1 1,101.
At the same time, air freight rates have risen and the shortage of lorry drivers in Europe has exacerbated the situation.
December saw a record-breaking flow of containers at US ports, with fewer barriers to shipping, but the arrival of Omicron and a new variant in the future could turn things around.
Increase in wages
Many lost their jobs or changed jobs during the epidemic.
More than 4 million people quit their jobs in the United States in April, the largest number ever, according to the US Department of Labor.
As a result, companies have had difficulty recruiting staff such as drivers, food processors and waiters to work in restaurants.
A survey of the top 50 U.S. companies found that 94 percent of employees are having difficulty replacing retiring employees.
As a result, companies are forced to raise wages to attract employees and retain their jobs, or to offer sign-up bonuses for joining jobs. Companies like McDonald's and Amazon are offering hiring bonuses ranging from 200 to 1000 1,000.
Consumers are also being burdened with the cost of this extra wage. The global clothing brand Next has attributed the rise in prices in 2022 to an increase in employee wages.
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| Eliminate the help received during the epidemic |
Climate effects
Severe weather in many parts of the world has also pushed up inflation.
Hurricanes Ida and Nicholas, which passed through the Gulf of Mexico, affected global oil supplies and damaged basic oil infrastructure in the United States.
And last year's severe winter storms in Texas shut down large factories, further dampening growing demand for microchips.
Coffee prices have also risen due to declining crop yields in Brazil after nearly a century of severe drought. Remember that Brazil is the largest exporter of coffee in the world.
Barriers to trade
More expensive imports are also causing prices to rise. New post-Bridget trade rules have reduced UK imports from the EU by almost a quarter in the first half of 2021.
Roaming charges are being re-imposed on many travelers from the UK to Europe this year.
In addition, tariffs on goods imported from China to the United States are being paid by almost all American consumers.
Chinese telecom company Huawei said last year that US sanctions on the company in 2019 were affecting US suppliers and global consumers.
Eliminate the help received during the epidemic
The help and support that governments around the world have provided to businesses in dealing with the effects of the Corona virus since the outbreak began is being scrapped.
Expenditure and borrowing increased worldwide during the epidemic. This led to an increase in taxes, which helped reduce the cost of living, but did not change the wages of most people.
Many developed countries have policies such as Furlo to protect their citizens, as well as welfare policies for low-income people.
Some economists believe that the elimination of aid during the epidemic could lead to further inflation.
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