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Why Everything’s Getting More Expensive These Days (infographic)

A lot of people are well aware of the fact that you should try to invest your savings because of the fact that this is the sort of thing that could potentially end up protecting said savings from inflation. Inflation is basically the rising price of goods all around the world and it is essentially why your savings will be worth a little less than they currently are if you don’t take steps to try and protect yourself from it all in all.

There are a number of things that could end up causing inflation. Increase demand for a certain product will obviously result in the creator of that product driving up prices since that is something that tends to happen due to basic economic principles. Another factor that could cause inflation is an increase in the amount of money required to product a certain product since this would invariably factored into the price at which the manufacturer would be willing to sell said product. These days the world has been experiencing a higher than average rate of inflation.

Inflation is generally considered to be something that needs to be controlled since it can result in higher costs of living for the average person. With all of that having been said and now out of the way, it is important to note that sometimes it can also be a good thing since it can enable people to earn a lot more which is something that many might notice in the recent 5% increase in average pay that workers started receiving in 2021.

However, not everyone is employed and those that are will not be getting any kind of standardized pay increase based on the condition of the company they work for or the industry they have ended up specializing in. That has made it rather necessary for governments to improve social security so that there is a safety net for people that can’t keep up with the increased living costs. Social security has increased by 6% this year so that no one is left behind, although the ironic thing is that this may very well result in even more inflation down the line.

If people have more money, they would be more willing to spend it. A freely spending populace might not be aware that they are over paying for a certain which will result in inflation becoming a great deal more prominent with all things having been considered and taken into account. However, recent inflation has more to do with a phenomenon that has not generally occurred in the past two or three decades so it should be seen through a different lens.

The biggest driver of the massive inflation that we are seeing right now is actually a breakdown in supply chains. Global supply chains used to work similarly to a well oiled machine, but after the coronavirus pandemic things started to become a great deal less efficient. This has created backlogs and has put many ports at capacity forcing cargo ships to wait for days before they can unload their cargo and that creates scarcity which fails to meet demands and an increase in prices occur. It remains to be seen whether or not inflation will level out this year. Take a look at below infographic for more insights. which comes courtesy of Expensivity.
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