Cost of Living Crisis Deepens: Why Everything Keeps Getting More Expensive

Market dynamics and the level of competition within various industries can also influence pricing. In industries with limited competition, businesses may have greater pricing power and be able to pass on cost increases more easily, or even increase prices beyond what is strictly necessary to cover costs. Conversely, in highly competitive markets, businesses may be more constrained in their ability to raise prices. Shifts in market structures, such as increased consolidation or the emergence of dominant players, can therefore have implications for consumer prices.