Why a war you’ve never been near, a virus you hoped was over, and oil barrels you’ll never see are making your favourite snacks, apps, and gadgets cost more.
INTRODUCTION:
Let’s be honest — it’s not just you. Prices really are going up. That iced coffee, that packet of chips even your Netflix subscription. It’s called inflation, now while that might sound like a grown up economics word, it’s very much your problem now.
The plot twist — it’s not just due to local issues but the main culprits are the global events. Things happening miles away from you— wars, pandemics, currency shift— are messing with your daily budget. Here’s how.
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- COVID19— The Global Reset Button.
When the pandemic hit, the world shut down. Factories shut down, businesses collapsed, shipping routes disrupted, and demand shifted overnight. Years later, even now,
- Supplies are still catching up.
- Shipping is costlier.
- Even basic goods are more expensive.
Recovery since then has been slow and has affected a wide range of goods, from laptops to snacks.
- Russia-Ukraine War
Russia and Ukraine aren’t just popular names in the news, they are major suppliers of
- Oil, gas and fertilizers.
- Wheat and sunflower oil.
War disrupted both countries leading to global shortages of these essential commodities. Sanctions on Russia pushed oil/gas prices higher, shipping routed were blocked or limited resulting in higher costs of fuel, food and transport globally.
- Oil Price Surge
Oil affects more than just fuel — it powers transport, factories and production. When oil prices rise, companies pay more to move goods. Planes, trucks and ships all run on fuel. Factories require fuel to run their machines for production. Plastic for packaging comes from fuel. Resulting in higher costs of daily goods. Thus, your wallet suffers quietly when oil prices go up.
- Dollar Domination: When one currency rules them all.
80% of the global trade is done in USD. When USD gets stronger, import prices become high, weakening other currencies. Countries have to spend more of their local currency to buy goods priced in USD, and thus due to this currency pressure, inflation rises. It affects electronics, fashion, food and even tech subscriptions.
- Shrinkflation
Ever noticed the chips bag contains more air than chips nowadays. Same price, less product. That’s shrinkflation. Companies keep prices the same but lessen the quantity, it may feel like nothing’s changed but we’re getting less for our money. Companies use this tactic of shrinkflation to avoid alarming the customers with visible price hikes.
WHY DOES THIS MATTER TO US?
Because we feel it — even if no one talks about it. Those pricy cafeteria lunches, the hiked-up subscription fees of streaming services, the expensive phones…
Understanding global events us the power to understand why this is happening — so we can be smarter with money instead of being frustrated
CONCLUSION
The world is connected—more than we realize. A virus in one country, a war in another, or an oil spike across the ocean can quietly sneak into our daily lives through price tags. But if you understand the why, you’re already ahead of the game. And that’s exactly what smart money is about.