Globally, the prices of many items have skyrocketed due to a variety of factors, and the following are some of the major examples:
1. Crude oil and energy: Prices of crude oil and energy have been rising as the global economy gradually recovers and there is a shortage of supply.
2. Metals and construction materials: with the recovery of the real estate market and the increase in infrastructure and construction projects, the prices of metals such as steel, copper, and aluminum, as well as construction materials such as lumber and cement, have been rising.
3. Food and beverages: Factors such as climate disasters, supply chain issues and rising commodity prices globally have led to an increase in the prices of many food and beverages, such as corn, soybeans, coffee and chocolate.
4. Semiconductors and electronics: A shortage of semiconductors around the world has led to higher prices for many electronic products, such as smartphones, computers and game consoles.
5. Medical supplies and medicines: Prices of medical supplies and medicines are also on the rise due to the ongoing New Crown epidemic and increased demand for medical equipment and medicines worldwide.
The following are some of the reasons that may cause things to become more expensive:
1. Increase in the price of commodities: Certain commodities, such as oil, metals, and food are known as commodities, and their prices are usually affected by factors such as supply and demand, and geopolitics. If the prices of commodities rise, then the prices of products related to them may also rise, such as fuel and food.
2. Disruption of production supply chain: The production and supply chain of some commodities may be disrupted due to natural disasters, political unrest, transportation paralysis, etc., resulting in a shortage of supply and hence higher prices. For example, during the COVID-19 epidemic, transportation control and business shutdowns in many countries led to insufficient supply of some commodities and price increases.
3. Currency devaluation: Currency devaluation leads to higher prices for imported goods because more local currency is needed to purchase the same imported goods. For example, if the exchange rate of a country's currency declines, then residents of that country will need to pay more in local currency in order to purchase imported goods.
4. Monopoly or Oligopoly: Certain goods may be monopolized or oligopolized, which means that a few firms control the market share and can make higher profits by raising prices. In this case, the price of the commodity may rise rapidly.
5. Significant increase in demand: If the demand for a commodity increases significantly and the supply cannot meet the demand, the price will rise. For example, the price of tickets to tourist attractions usually increases during vacation periods.