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RE: Covid-19 - Part 3: Predicting the impact economic forces will have on prices of goods and services

in #covid194 years ago

Normally a fall in demand leads to a fall in price. However, there are so many factors that influence demand and supply. Covid-19 affects both demand and supply, whichever force is stronger will determine what happens to price.

Food distribution could be delayed because of supply chain problems caused by the virus. It might also be worth looking at foreign exchange rates. The price of your currency could be falling, which would also put pressure on prices to increase.

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Exactly after much deductions I came to the conclusion that it's the price of the currency that's actually falling this in turn Makes for inflation of prices of goods and services in the country and at first I thought this was an anomaly. Thanks a lot really.