1. What is currency overprint?
At present, central banks all over the world are printing paper money crazily. It may ease the domestic mood, but the crazy printing of money in the United States will definitely lead the world to buy some for the United States, and inflation will be exported in disguise. It is reported that the United States alone printed 2 trillion US dollars, and the European Union also printed paper money. According to incomplete statistics, the global printing amount exceeds1000 trillion yuan, reaching the GDP of China in one year. It is difficult to consider whether the price is high on this scale. The second is the real estate market, stock market and price of the three major domestic economies. With the growth of foreign exchange, domestic hot money cannot continue to invest in the stock market and real estate market, because there are bubbles in the stock market and real estate market, which are not allowed to continue and cannot be controlled. Such huge funds can only raise prices to curb the pressure brought by inflation, and natural prices will also rise.
2. Reduced production caused by epidemic.
At present, the international and foreign epidemic situation is quite severe, and the domestic excellent epidemic prevention materials must have more output than input. A large number of orders that cannot be completed abroad are transferred to China, which leads to an increase in the cost of domestic raw materials. Because a lot of electronic information about the epidemic situation is shipped back from abroad, the isolation of pneumonia in COVID-19 is not ideal in foreign countries. This will lead to the scarcity of materials, which will naturally lead to price increases, and the final product with material price increases will of course lead to price increases. Under the epidemic situation, the production capacity of raw materials is limited, the output is small, and the market demand for raw materials is small. With the relief of the epidemic and the large-scale vaccination of vaccines, the production capacity gradually recovered. When the supply of raw materials is in short supply, the relationship between supply and demand affects the price, which leads to the price increase.
3. Resource shortage caused by large-scale hoarding of materials.
However, international financial capital institutions hoarded raw materials and speculated in the futures market, which led to the recent rise in commodity prices and thus made a lot of profits. This trend will last for at least two years, and the pressure of RMB depreciation will be even greater. In the environment of sluggish demand in the real economy, the global economy has not fully recovered. Therefore, according to the reasons, inflation can be divided into three types, namely, cost-driven, increasing demand and structural imbalance. The inflation of these three points will touch the rise of raw materials, so the rising cost of raw materials is one of the inevitable reasons for inflation.