It seems to be clear to everyone that from the food to the heating of our houses, the price of everything is now increasing.
Since the beginning of the pandemic, the price of gasoline decreased, but after a few restrictions started to be lifted, the demand increased, hitting a seven-year high. As reported by BBC news, in the US gasoline costs around $3.31 a gallon which meant it is $2.39 more than one year ago. The same occurs in the UK and Europe. In January 2022 domestic gas costs in the UK rise by 28% and domestic electricity by 19% due to lower production of natural gas and a wider demand after the pandemic restrictions were removed. As well as this, shipping companies around the world experienced an overwhelming demand after the pandemic. It also results that nowadays sending a 40ft container from Asia to Europe costs $17000, up 10 times more than last year.
Also, due to the Russian invasion of Ukraine, it wasn’t just energy and petrol prices that increased. Russia and Ukraine are large producers of wheat and some metals. Their prices have also risen. This might indicate the chance that food might become pricier too.
Considering this, it is important to talk about the phenomenon of inflation. What does mean inflation? Which kind of consequences generates around the world?
Inflation is normally interpreted as the rise of prices of goods and services during a specific period. Inflation is an important economic indicator for the countries of the world. Indeed, inflation tariffs are the rates that influence the increase in prices of goods and services in a country’s economy. In this way, the cost of living rises. Whereas deflation can be defined as the decrease of prices.
The inflation does not seem to give signs to decrease or cease any time soon. With the combination of higher demand for oil and gas, the prices of rent that have been rising steadily, the increase in mortgage bills, it is quite clear that people need to find a way to cope with the cost of living rising. To do that, here come a few tips that people could follow in the everyday life.
A good idea that involves recurring costs such as cable bills, a plan for mobile phones, and gym memberships, could be calling customer service to ask for a lower tariff. In this way, the expenses of the month could be reduced.
Regarding buying tickets, it is not always true that they will become pricier over time. Sometimes, waiting and buying tickets right before the due date may be a good idea to have cheaper prices.
Regarding how to combat the rising food prices, it might be wise to eat at home, prepare a shopping list of what is really needed to be bought, avoid buying prepared food, and eat before buying groceries. Also, if people buy locally, they can save money on petrol used to reach further places. It is also advised to compare shops and prices, to know where to go to buy specific products instead of others.
As it concerns the petrol, unfortunately not much can be done.