Items increasing in price in the UK and worldwide
Prices are increasing at a relatively rapid rate on various items and services. Andrew Bailey, the governor of the BoE, has even apologized for the situation. He said that none of them wanted to see that happen.
The reasons behind increasing prices can be pretty complicated. Here are a is an example to illustrate the situation, for example Uber fares: The cost of transportation is getting more expensive. The popular ride-hailing app recently raised its fare by 10% in London.
Passengers in London needing to get from the airport at peak times face a 15% surcharge.
Uber states that boosted demand means the company needs more drivers. By raising the prices of rides, the company believes in attracting new drivers while trying to tempt back those drivers who have left to work for delivery companies instead.
Motorists can now fill up their tanks without waiting with their petrol or diesel car, but prices remain high. The RAC Motoring group says that diesel reached 150p a liter while petrol hit 146p a liter in recent days.
RAC fuel spokesman Simon Williams commented on the process, saying that filling up a family car with 55-liter petrol has now surpassed £80 for the first time. He added that the high price of oil and the fuel parts mean drivers have to face an expensive winter, especially for people with a low income who use their car to go to work every day.
Other cases of price-increase
Here are some other situations where the price increase is proving to be an issue.
- Renovating the house
If you want a summary of problems causing price increases in general, consider the example of DIY (do-it-yourself) and home renovations.
The pandemic, shipping costs, global demand, and labor shortages are reasons why it is now more expensive to renovate an apartment or a garden fence.
The cost of timber has increased compared to a year ago, so interior walls and fences have become more expensive this year.
The current pandemic drove up the cost of raw materials. Head of housing and planning policy at the National Federation of Builders, Rico Wojtulewicz, said that shipping container prices from China witnessed a more than four-time rise.
- Savory snacks
Savory snacks include the kind of processed snacks popular with all age groups. Those snacks are Doritos, Pringles, Hula Hoops, and many others.
Prices for these snacks increased by 7.7% when compared to the same period a year ago.
Head of retail and consumer insight at Kantar, Fraser McKevitt, says that prices increased during the pandemic because retailers used fewer promotions and had less discounting in supermarkets to guarantee stock on the shelves.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.