First of all, what is the price change of raw materials is invisible to most people, but it is still very sensitive to the terminal price of bulk futures. This requires personal contact and experience to know. For example, copper is used to make motors, petroleum refining is the main source of plastics, and iron produced by iron ore has more uses, so the rise in the prices of these raw materials will inevitably lead to the rise in the prices of many commodities, because the cost has increased. You can't sell at a loss, so the price of domestic appliances, such as TV sets, range hoods, washing machines, etc. , will rise by more than 10%, and the price of individual products will rise by more than 20% before businesses can make money.
What is currency overshoot?
According to the principle of economics, in a certain period of time, the total amount of social goods is fixed. If a corresponding amount of money is issued, the commodity value and monetary value of the whole society are equal. For example, the value of all commodities is 100 trillion, and the currency issued is 200 trillion. Then 1 If the price of instant noodles is 2 yuan, the price of intangible goods will rise, and the value of money will decline, which will eventually lead to the currency being worthless.
How much does the epidemic affect the price increase of raw materials? After the outbreak of the epidemic, countries have adopted quantitative easing economic stimulus policies and continuously printed paper money. For example, from the balance sheet data of central banks, all countries except China have negative growth. In absolute terms, the United States is the first. The Fed's balance sheet has expanded by more than $3 trillion. Because the dollar is the world currency, this printing method is almost equivalent to bleeding $400 to 7.5 billion people around the world, helping American enterprises and individuals. Therefore, the excessive issuance of money by the central bank will definitely lead to an increase in raw material prices.
Since the outbreak of the epidemic in the world, almost all countries except China have been affected by the epidemic, and the production of many enterprises has been affected by the epidemic. For example, in the automobile chip industry, the world chip suppliers affected by the epidemic have ushered in a shortage trend. The global shortage of automobile chips will lead to the loss of 4.5 million cars, which is equivalent to about 5% of the global annual automobile production. Therefore, the shortage of products in the market will inevitably lead to a sharp rise in prices.