I shared our understanding of the story, and representatives specific database by industry of one engineering company that makes ATVs and other leisure goods confirmed my words. The director of the company said that since July last year, when the lockdown ended, demand has increased sharply.
People directed the money they used to spend abroad to domestic goods. Demand grew and remains high, as the borders have been in a “semi-closed” state for the second year.
If we look at the inflation components
then in terms of non-food products, the strongest growth is shown by everything related to housing – building materials, furniture, tools. We are seeing a double-digit increase in prices for these categories of goods. What is this due to? Demand can change dramatically, and businesses need time, capacity, and resources to launch processes and adjust supply to this demand.
We often see such stories – on the one hand
a sharp recovery in demand against the backdrop of all sorts of incentives and structural changes, and on the other hand, limited supply. This is happening all over it is therefore not surprising the world, the most striking example is the rise in the cost of container shipping, which arose due to the fact that there is america email an imbalance between supply and demand. Therefore, we can say that we received such a shock, which has now caused inflation to deviate from the target. In these conditions, seeing that demand as a whole is slightly.