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

One significant contributor to rising living costs is demand-pull inflation. This occurs when there is an increase in aggregate demand for goods and services that outpaces the available supply. Several factors can fuel this increased demand, such as a growing population, rising consumer confidence leading to increased spending, and expansionary fiscal and monetary policies implemented by governments. When more people want to buy a limited quantity of goods and services, businesses can raise prices due to increased competition among consumers for those scarce resources. This heightened demand across various sectors of the economy exerts upward pressure on prices, making everything from groceries to electronics more expensive.