The first is the demand side. The epidemic prevention and control is gradually improving, and the economies of developed countries led by the United States are accelerating their recovery. Especially after President Biden passed the fiscal stimulus policy of10.9 trillion, the rebound of American economy took the lead among developed countries.
The second is the supply side. Because developed countries are in the downstream of the global industrial chain and belong to the demand side; Most low-and middle-income countries are in the upper reaches of the industrial chain and belong to the supply side. At present, the vaccination and epidemic prevention work in emerging economies lags behind that in developed countries, which will lead to different stages of economic restart, which will lead to a mismatch between supply and demand for a period of time, thus directly pushing up commodity prices.
The third is inflation expectations. Because most countries adopted large-scale stimulus policies during the epidemic, which released a lot of liquidity to the market, inflation expectations rose rapidly, and commodities were the best target to fight inflation, so funds began to chase commodities.
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Difficult to resist the rising pressure of commodities, Coca-Cola announced that it would raise prices:
Coca-Cola, a giant in the beverage industry, said it would raise prices to cope with the impact of rising commodity costs. James Quincey, CEO of Coca-Cola, said in an interview with American media: "We had good hedging measures in 20021year, but the pressure is increasing in 2022, so the price must rise."
The financial report released by the beverage giant on the same day showed that the revenue in the first quarter increased by 5% year-on-year to 9.22 billion US dollars, and the net profit fell by 19% to 2.25 billion US dollars. The company said that due to the introduction of the vaccine, sales in March returned to the level before the epidemic, and more people could eat out again.
Although a new round of pandemic-related blockade has appeared in some parts of the world, this positive trend will continue. However, the epidemic in some developing countries will take longer-not just a few months, but next year, or even longer, to really control the epidemic.