The issue of rising prices almost always remains relevant. Of course, first of all, it worries the low-income strata of the population, which in our country are the majority. You don't have to be a professional economist to understand the reasons why prices go up. And there are a lot of such reasons.
Instructions
Step 1
One of the main reasons is the decline in industrial production. When a country ceases to produce products necessary for the population, they are imported from abroad, which, naturally, affects the cost of such products. Indeed, its price includes customs duties and delivery to the consumer, which makes some types of industrial goods much more expensive.
Step 2
The same reason explains the rise in prices for agricultural products. In addition, this type of goods is influenced by factors such as the weather. In lean years, during dry or too rainy summers, prices for bread, cereals, vegetables and fruits also rise.
Step 3
Affects the rise in prices and constantly rising prices for diesel fuel and gasoline. This is due to the fact that almost all products are delivered to the consumer with the participation of vehicles, and transportation costs are also included in the cost of any product. In addition, harvesting is also provided by agricultural machines and vehicles.
Step 4
The rise in the price of goods and the rise in prices are also associated with populist methods that the government uses to attract certain segments of the population to its side. The promised increases in pensions or wages of public sector employees even before their implementation become the cause of the rush demand for goods.
Step 5
Natural disasters can lead not only to an increase in the cost of agricultural products. For example, a flood in Thailand caused the shutdown of many factories that produced parts for computers and their components. Since the flooding began, the price of computer hardware alone has more than doubled.
Step 6
Of course, under capitalism, in which the country lives today, demand creates supply, and an increase in demand without satisfying supply leads to a deficit and, accordingly, an increase in prices for a certain product. The laws of the market, described in the famous "Capital" by Karl Marx, have not yet been canceled. Therefore, if you wish, you can familiarize yourself with this issue in more detail by reading this fundamental work, which is mandatory for everyone who is interested in the issue of price increases professionally, as an economist.
