Economically speaking, the is no shortage of things compared to the pre-war state of the world. It's only that the Western countries have stated "we don't buy from a certain (big) player no more", and by that, they have shrunk the mass of goods available to them in certain sectors. Which, as a consequence of that, drives up the prices. - So yes, this is a part that is totally artificial. Because there aren't much fewer wares on the market than before (except for those which are affected by the war activity in Ukraine directly - like sunflower oil, which can't be produced from fields not harvested, fields not tilled, raw material destroyed through battle activity and infrastructure for production destroyed, blocked and people who worked in the production chain before now fighting in the war or fleeing to foreign countries).
Another part of it is simply the panic at the stock exchange. Unforeseen events always shake the markets and make players wobbly about their behavior and their decisions where to invest/park their money. This drives up prices too - in combination with the artificially shortened supply of certain products on the part of the market available to the West.
The third one is very much buried in the whole issue of energy imports and fuel. As Europe could previously work very well with the cheap Russian gas and oil, and now it looks like there's going to be a hike due to Nord Stream 2 being abandoned and the Western countries shifting their contracts to buy the significantly more expensive LPG from the US in the long term. - Partly, you also have the panic on the market in this issue present, as the prices for oil and gas get driven up by the Western embargoes. (Germany still tries hard to avoid breaking up on Russian gas and oil because its industry keeps saying "Don't do that - or we have to close!" - but enough countries around join the choir of abandoning the energy imports.)
And a fourth one... How to say... If talking about the prices for foods (e. g. meat prices have noticeably exploded), it seems on the surface that the industry which sells the finished products abuses the new situation in order to raise the prices. In order to just make more profit than usually. - The war in Ukraine and its effects posing just an excuse to do it, so to say.
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Date: 23 April 2022 07:17 pm (UTC)Another part of it is simply the panic at the stock exchange. Unforeseen events always shake the markets and make players wobbly about their behavior and their decisions where to invest/park their money.
This drives up prices too - in combination with the artificially shortened supply of certain products on the part of the market available to the West.
The third one is very much buried in the whole issue of energy imports and fuel. As Europe could previously work very well with the cheap Russian gas and oil, and now it looks like there's going to be a hike due to Nord Stream 2 being abandoned and the Western countries shifting their contracts to buy the significantly more expensive LPG from the US in the long term.
- Partly, you also have the panic on the market in this issue present, as the prices for oil and gas get driven up by the Western embargoes. (Germany still tries hard to avoid breaking up on Russian gas and oil because its industry keeps saying "Don't do that - or we have to close!" - but enough countries around join the choir of abandoning the energy imports.)
And a fourth one... How to say...
If talking about the prices for foods (e. g. meat prices have noticeably exploded), it seems on the surface that the industry which sells the finished products abuses the new situation in order to raise the prices. In order to just make more profit than usually. - The war in Ukraine and its effects posing just an excuse to do it, so to say.