Post Pandemic inflation is already worrying everyone
Early 2020 is a horrifying dream for many leaders and entrepreneurs. The emergence of a new virus that spread to many corners of the world had made the economy to come to a standstill and made many nations impose strict lockdown. The situation forced many companies to pause the operations and the revenue fell to bottoms and already many startups are uncertain about the future ahead of the post covid19 phase.
Now the new inflation trends are more worrying to all. Due to the pandemic and lockdown, almost all the economic activities are restricted and which made many offices shut.
Though the inflation trends may follow up and downtrends depending on the market trends, this is something new. The new worrisome inflation is far different from the history and it is a new challenge to be faced.
Already we are slowly entering the phase of post-pandemic. the hope on the emergence of vaccine is increasing day by day and there are gradual relaxations on the economic activity resuming allowed in many industries by governments. But the shutdown for the past few months of many industries has created an imbalance in the demand and supply chain. The produced raw materials storing in the godowns due to new demand has added new storage expenses for farmers and raw materials suppliers which will effectively affect the prices of these materials and the worry is how will these effects the output products prices in the market. This imbalance will have a major effect in the coming years.
These are just a few things that need to be noted. There are many other factors, such as unavailability of credit and income for many force them to increase prices. Extra expenses with no revenue during the lockdown period will also have an effect on the economy. All these factors collectively will lead to a complex chain imbalance and will lead to an increase in prices.
Now though the effect of this inflation is no immediately seen on the economy in the long term a year or so the world economy will see a challenging phase to face. Now how to rebalance the cycle and recover to normalcy is a challenge and depends on the countries policies, it is important to note that the sentiment of the people also plays an important role.