Hopefully, you’ve noticed the substantial spike in the prices of goods recently. One reason probably comes to your mind: the invasion of Ukraine. Although some of the inflation is coming from the situation in Ukraine, other factors have also had a major impact.
Why is All of This Happening?
The main reason for inflation in 2022 is that people have been off work due to the pandemic. This means that each stage from manufacturing to delivery is slower. When the process is slower, stores have to pay more to receive things faster, and they will have to sell things at higher prices to continue to make a profit. This all has to happen because the demand for foods and other goods is increasing!
Does Russia Play a Role?
Of course, the effects of the invasion of Ukraine have had some impact on the pricing situation. Russia is a prominent supplier of fossil fuels to the world. As the countries are imposing sanctions on Russia, it is cutting off the supply of crude oil, natural gas, and more. This means that people have to pay more to source oil from other countries.
Will Prices Go Back Down?
In short, probably not. Prices are likely to remain high and possibly increase even more. The sanctions will not disappear, and the impacts of COVID may take many years to recover from.
Our goal now is to learn how to manage our lives with higher prices. For many, this may be a struggle. Remember to help out the people who are most in need, and always stay brave with the world!
