What Should You do When Inflation is High in The Long Term?
The price of oil is a major driver of inflation because it is used to manufacture and transport goods. But the shortage of raw materials and manufactured goods caused by the many countries' lockdowns is also one of the reasons for inflation.
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Last 3 months, I feel that my earnings diminished almost immediately. I get harder to achieve the earnings I want, but if I stop, I feel sorry for my referred members. Please let me know the reasons and how to improve it.
You can read my article to have a better understanding.
Disclaimer: This article is only to express my opinion. Do it at your own risk.
What is inflation? The currency depreciation and a comprehensive and sustainable rise in price levels caused by the currency in circulation exceed the real demands of the economy. USD100 today is naturally not as valuable as USD100 10 years ago. To measure the inflation rate, there are a few indicators, namely the consumer price index (CPI), producer price index (PPI), retail price index (RPI), wholesale price index (WPI), and GDP deflator.
Inflation is mainly driven by 2 factors: demand and cost.
From the demand side, social over-consumption, over-investment, and over-money supply will inevitably lead to an increase in product prices.
From the supply side, the rise in raw materials price, the increase in transportation expenses, and the rise in production cost have pushed up the selling price of products.
