Inflation & Supply Chain Issues-How bad is it going to get?!

[worle1bm]

I would say that inflation rates are not normalised in each country and if you see the charts then graphs are reluctantly increasing globally and this is not going to be solved soon due to reckless government policies and they are not taking proper decision implementations to cut this off and the general public is facing the issues.This pandemic many people were not able to produce many things as raw material was not available and then shortages occur like of fruits and vegetables and resulting in the surge of prices for these food items and common public have to buy them as they come under necessary items.But what most Governments is to debate over them and try to portray that they are doing right work then previous ones and everything is under control but we all know what's the true picture.

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[davis196]

There's a natural gas/electricity crisis in Europe.The prices are pretty high,which will cause inflation.
I don't see any problem with natural gas and/or electricity prices in the USA.What are you complaining about?
The inflation in my country is going to be bigger than the inflation in the USA,but I'm not complaining.
We just have to adapt and survive.The prices might go down after the winter(I'm talking about Europe,not USA).
I don't have any problems with supply chains in my country.I see news about USA having a shortage of truck drivers,which causes problems with logistics and supply chains.Is this true?

[Ultegra134]

Hasn't the increased demand pushed to a larger production, or is there a wider supply chain issue causing it?

In order to produce more, you need more machines, in order to get more machines, the manufacturer needs more materials, to get more material you need more machines to process them. this is not a thing that can be overcome in a few months.

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I see, haven't realized that it's not that simple. As I've mentioned on another post, it's a vicious cycle. It's just astonishing that I've been looking for some specific parts since the start of the pandemic and I still cannot find them. From what I've read, manufacturers are rushing into producing parts that are to be placed on bicycles, and aren't aimed to be sold in retail, which is aiming in the satisfaction of the increased demand in bicycles, rather than its parts.

Could potentially explain why I'm having trouble finding specific parts, some of which are on bicycles currently being sold, but not in any kind of store I've searched.

[Ucy]

    It is bad for every country right now. That, I can assure you. And yes, I am also afraid of this growing and quite difficult to solve problems with inflation that the world is facing right now. This is the reason why I along with the growing number of people are turning into this industry to somehow protect ourselves from the impending catastrophe that's about to happen because this is not something that can be questioned if, but when. One way or another the people who fail to see the potential of this industry will suffer badly for their stubborness. I just hope by then it still won't be too late for them because everyone has different capabilities in terms of finances and other stuff.

It may be for those whose basic needs are imported. If your country produces most of its basic needs locally and you focus more on basic needs that are produced locally, source your products/services from people who produce in abundance, and people who don't look for too much profit (likely the poor)  you won't be too affected by crisis.

I think it's also important to know how to buy good things at affordable rate. Lots of people don't know how, and they accept whatever price they hear/see without inquiring whether or not it's justified price.

[FrozenBit]

I'm starting to realize that a lot of things are changing after the pandemic. In the country where I live, the return to normal activities has also caused many items to become scarce and prices to increase. Although I don't see it affecting myself much, for those who are more difficult than me, they are facing huge pressures of life.

[Vatimins]

    It is bad for every country right now. That, I can assure you. And yes, I am also afraid of this growing and quite difficult to solve problems with inflation that the world is facing right now. This is the reason why I along with the growing number of people are turning into this industry to somehow protect ourselves from the impending catastrophe that's about to happen because this is not something that can be questioned if, but when. One way or another the people who fail to see the potential of this industry will suffer badly for their stubborness. I just hope by then it still won't be too late for them because everyone has different capabilities in terms of finances and other stuff.

It may be for those whose basic needs are imported. If your country produces most of its basic needs locally and you focus more on basic needs that are produced locally, source your products/services from people who produce in abundance, and people who don't look for too much profit (likely the poor)  you won't be too affected by crisis.

I think it's also important to know how to buy good things at affordable rate. Lots of people don't know how, and they accept whatever price they hear/see without inquiring whether or not it's justified price.

     But the problem is that this pandemic HINDERS EVERYTHING! People can barely shop or sell. Even the farmers have problems selling their products. Even buying materials proves to be quite a hassle since everywhere you go, vaccination cards are required. You can't even travel if you are not working or an employee that is employed to the place where you are heading. My grandfather died and I couldn't even pay my respects even when his death wasn't due to covid. Things are getting more difficult as time passes by.

[oHnK]

There's a natural gas/electricity crisis in Europe.The prices are pretty high,which will cause inflation.
I don't see any problem with natural gas and/or electricity prices in the USA.What are you complaining about?
The inflation in my country is going to be bigger than the inflation in the USA,but I'm not complaining.
We just have to adapt and survive.The prices might go down after the winter(I'm talking about Europe,not USA).
I don't have any problems with supply chains in my country.I see news about USA having a shortage of truck drivers,which causes problems with logistics and supply chains.Is this true?

If it is said that supply chain problems in the USA are caused by technical constraints such as a shortage of truck drivers then this is not a big problem.  However, have you seen the CNBC news which is expertly explained by the leading investment managers in the country and have concluded that this is not a temporary economic crisis.  Because there are many considerations that aggravate the current financial condition.  For example, the comment consumption index and riot approval

[stompix]

I somehow missed your post:

Its been said the human population of the world didn't explode, until the vast number of uses of crude oil were discovered. Prior to this, the technology didn't exist to grow enough food to support a larger human population.
Fuel for transportation is one use. Fertilizer and pesticides are another. Gasoline, crop fertilizer and pesticides are all synthesized from crude oil.

Fertilizer is made using gas, methane to provide hydrogen (lol!:) for the Haber process, so the current cost are not because of the oil price but because of natural gas shortage and the fact that Germany and Poland are the main producers in Europe and they are in a mess of their own where instead of using gas for this they need it now for electricity, winter is coming and they will burn more for heating too....

I would encourage everyone to begin searching for alternatives to anything oil based. Thanks to modern science, there are many alternatives available.

The alternative is so expensive it will never be sustainable unless we double the price of food.
Of course, we could go fully natural but it's not like all the birds in the world will poop enough guano for the agricultural needs at these levels.

!

I see, haven't realized that it's not that simple. As I've mentioned on another post, it's a vicious cycle. It's just astonishing that I've been looking for some specific parts since the start of the pandemic and I still cannot find them. From what I've read, manufacturers are rushing into producing parts that are to be placed on bicycles, and aren't aimed to be sold in retail, which is aiming in the satisfaction of the increased demand in bicycles, rather than its parts.

Could potentially explain why I'm having trouble finding specific parts, some of which are on bicycles currently being sold, but not in any kind of store I've searched.

Highly possible, it's an economic decision probably.
If you're a manufacturer and you lack all the materials to produce everything you can you focus on things that have a better margin of profit and those for which you deal with large producers, security of long terms contracts is the main key in this. If I would produce different things let's say aluminum I would for sure stick with producing cans for a large beverage company rather than selling aluminum sheets or tubes to random retail sellers with low volume each.

As I said before, we're in the same situation, we're waiting for months for two pieces for the forced steering system on one of our tractors, the other is already patched with parts from compatible non OEM and even some second-hand ones, hope it doesn't break till the end of November at least.

[SquallLeonhart]

It may be for those whose basic needs are imported. If your country produces most of its basic needs locally and you focus more on basic needs that are produced locally, source your products/services from people who produce in abundance, and people who don't look for too much profit (likely the poor)  you won't be too affected by crisis.

I think it's also important to know how to buy good things at affordable rate. Lots of people don't know how, and they accept whatever price they hear/see without inquiring whether or not it's justified price.

Unfortunately my nation is living one of those situations. We are a huge nation, we have a lot of population, we have a lot of land, and yet we still import even food from other nations. If it was something else I would understand, but I am talking about stuff as simple as wheat at some times, obviously wheat is not something we need to buy from other nations frequently, it rarely happens but it did happen a few times over the past years.

When a nation is mismanaged, everything gets screwed. From farming to technology to medical to law to any other thing you can consider. It is about people in power trying to abuse their power and change the nation to their favor ending up with bad results in all these things.

[wxa7115]

First, how bad is inflation in your country..what % is it currently at?  (Here in the U.S. it's between 4-6% on average.  Many items have inflated much more such as seafood being around 20-30%)

Second, are you seeing supply chain issues in your country and how bad is it? (For example my favorite toilet paper has not been produced for well over a year now.  Recently my two favorite bags of chips have become unavailable from both supply chain issues and factories focusing on other items, putting them ahead of my FAVORITE damn chips lol).

This is quite similar to what we’re facing in my country as well, there have been an increase in the price of almost everything you can get in the market these days. And as for not finding things I need in the market, well I can find them but the problem that I’m having with most of them these days is that companies are beginning to reduce the number of items that were usually in their products they sell: take for example let’s say that you can buy a biscuit of $5 and see about four pieces of biscuits inside it, this time around if you buy that same biscuit you are going to see only three pieces inside it.

And the worst part of it is that even after they have decreased the number of items in that product, they will also increase the price as well which is really annoying. I just hope that things get better and not continue like this.

We will have to wait and see, for a long time there have been predictions about the fall of the fiat system and since it has not happened then those which are in favor of the fiat system use this as a demonstration that it will never fall, but we know better, we know it will happen we just do not know when it will.

However the crisis caused by the pandemic is proving to be a huge problem, the government printed a lot of money, the taxes they collected went down, the economic activity went down as well, and even after all the vaccination effort the economic recovery has been way slower than anticipated, so with all of that in mind I do not see things getting any better for at least a year.

[Ultegra134]

I somehow missed your post:

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!

I see, haven't realized that it's not that simple. As I've mentioned on another post, it's a vicious cycle. It's just astonishing that I've been looking for some specific parts since the start of the pandemic and I still cannot find them. From what I've read, manufacturers are rushing into producing parts that are to be placed on bicycles, and aren't aimed to be sold in retail, which is aiming in the satisfaction of the increased demand in bicycles, rather than its parts.

Could potentially explain why I'm having trouble finding specific parts, some of which are on bicycles currently being sold, but not in any kind of store I've searched.

Highly possible, it's an economic decision probably.
If you're a manufacturer and you lack all the materials to produce everything you can you focus on things that have a better margin of profit and those for which you deal with large producers, security of long terms contracts is the main key in this. If I would produce different things let's say aluminum I would for sure stick with producing cans for a large beverage company rather than selling aluminum sheets or tubes to random retail sellers with low volume each.

As I said before, we're in the same situation, we're waiting for months for two pieces for the forced steering system on one of our tractors, the other is already patched with parts from compatible non OEM and even some second-hand ones, hope it doesn't break till the end of November at least.

Definitely an economic decision, such things are contracts, it's way more profitable to sell in bulk quantities to manufacturers rather than individuals. However, almost two years have passed and things aren't looking any better. For how longer will we face such issues? When will these issues be resolved? It looks like we have a long way to go before the majority of them are resolved.