The world is being dragged into a new rise in prices – there is a shortage of raw materials
One of the main problems facing the world economy today is the rapid rise in prices for various products. Raw materials and product shortages have become an additional factor triggering price increases.
The famous Financial Times writes about what happened that, raw materials for most countries in the world in the near future and crop shortages await. This leads to a new rise in prices. That’s why that, oil, metals, grain and Global prices for other basic goods and food products increased by an average of 46 percent compared to the beginning of 2021. The rise is the highest since 1995. Rising prices are partly improving global business and It is also associated with a sharp increase in consumer demand against the background of improving the epidemiological situation in a number of leading countries. Goldman Sachs investment bankNicolas Snowden, an expert on that, The volume of raw materials, which are currently important for the global economy, can be said that, exhausted. Investors agricultural products, energy products and began to buy goods in all categories, including metals. According to Snowden, this does not meet the growth of supply and demand: “For example, stocks of arabica, which is used to make the famous high-quality espresso coffee, fell to the lowest level in 22 years.” Carlos Mera, chief analyst at Rabobank, expects an uncontrolled rise in the price of this raw material: “The price of coffee on the ICE futures exchange is already final 10 rose to its highest level of the year, 2.59 per pound dollars (5.7 per kilogram dollars) contane. This is 13 percent more than at the beginning of this year and twice as much as last year. Reasons for supply disruption and It is a decrease in exports from Central American producers.
The Financial Times writes that, Metal traders are also willing to pay higher amounts to get the goods as soon as possible: “For example, copper and aluminum reserves are depleted. As a result, the price of a ton of metal has already risen to $ 3,200. In addition, a shortage of lithium is expected for the production of batteries. The price of lithium carbonate has more than quadrupled to 50 thousand per ton dollarspassed. The rise in prices for these metals is due to the rise in energy prices according to in Europe and Manufacturing plants in China have begun to reduce production. World oil production is also “frozen”. The reasons are bad weather conditions, new mines and investment in oil fieldsflour lack of, as well coronavirus due to supply problems. As a result, the price of crude oil has already risen above $ 95. However, according to experts, this is not the end. Besides, gasprice in Europe gas conflict and Russia “It is rising against the background of tensions between Russia and Ukraine.” According to Bloomberg analysts that, Renewal of oil price peaks can have a certain impact on the world economy: “Oil 10A rise to 0 US dollars will weaken global growth prospects and accelerate inflation. Calculations according tothe average price of oil from $ 70 at the end of 2021 this year 10Rise to $ 0 in the US and It will increase inflation in Europe by another 0.5%. Analysts at JPMorgan Chase believe so that, Reaching record levels of oil prices will generally halt global GDP growth and will cause a recession in the world economy. “
Recall that, Goldman Sachs Group Transnational Investment bankto the forecasts according to, the average price of oil will reach $ 100 this year. Other transnational investments bankı – to the forecast of the Bank of America Corporation according to Oil prices could reach $ 120 by the middle of this year.