The vicious circle of price increases, which no one has explained to you before

We’ve all come to terms with terms like ‘inflation’, ‘financial markets’ or ‘supply chains’ lately, but very few of us know the real vicious circle of price increases and how we actually get to know them. we are facing higher and higher prices.

Many people think that prices are “dictated” from somewhere, simply and that they do not really want to be reduced. In fact, however, the simple price increases that we see displayed on store shelves or at the pump, when refueling the car with gasoline or diesel, have much deeper explanations and can be compared to a large chain of weaknesses.

Expenses, explained for everyone’s understanding

Let’s take the example of fuel, because it is the most popular and handy subject. It seems that, more recently, the increase in fuel prices poses major problems for the shipping industry. This information may seem uninteresting to many of us, but it is directly reflected in global supply chains, and so we are witnessing new price increases, without realizing what their real and direct cause is.

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At the moment, analysts warn us, in the latest reports, it seems that the price of fuel for ships in the port of Rotterdam has reached the highest level since 2019, after an increase of 23% compared to the situation at the beginning of the year. .

“This is one more reason why global commodity prices and inflation are so high,” said Mark Williams, an oil and refined analyst at Wood Mackenzie Ltd.

Much of the rise in the price of fuel for ships is caused by rising oil prices, which are the raw material from which most fuel for ships is produced. Unfortunately, we may see a worsening of crude oil prices. The culprits for the future negative evolution would be the geopolitical tensions that could degenerate at the Ukrainian border with Russia.

“I believe that if a war breaks out between Russia and Ukraine, [prețul de] $ 100 a barrel will be almost insured.

More than likely we will have a strong peak and then we will decrease. The $ 100 a barrel is more likely because stocks are the lowest in years, ”said Phil Flynn, a market analyst at Price Futures Group.

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