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How Expensive Has Life Really Become in 2022
Ever since the pandemic outbreak, most countries have been going through major economic setbacks and the population have had to face an increase in cost of living, mainly when it comes to food, fuel, electricity and all basic human necessities. This uncontrolled increase in prices, which experts do not expect to subside at least until the second half of the year, doesn´t correspond to the evolution of wages, apart from very few exceptions.
Electricity and Fuels
The effects of the virus are also being felt in the economy in Europe in the form of a rise in prices that has not been seen in the last 30 years. Inflation ended 2021 at 6.7%, followed by an increased electricity bill, which in turn is making the manufacture and distribution of all products more expensive, from pasta or oil to cars and microchips. In fact, 60% of companies are considering raising their prices by 2022, according to a recent survey. Very similar to this increase will be the evolution of fuel prices. During 2021, the price of a barrel of Brent increased by almost 50%, so filling a gasoline tank now costs 25% more than at the beginning of 2020: 81.2 euros, almost 17 euros more than a year ago. The forecasts are not better for the year that begins since a barrel of crude oil will be placed at 85 dollars, which is around 10% more.
Transportation and Cars
Buying a car will become more expensive in 2022, due to the rise in the Registration Tax, effective from January 1, so cars will rise by an average of between 800 and 1,000 euros, according to the Faconauto employers’ association. The shortage of microchips, which has created plenty of orders pending delivery of 250,000 units, will not contribute to lowering the price either. In addition to the private vehicle, public transport will tend to update its rates upwards, although the crisis due to the pandemic will contribute to moderating these increases. For instance, Ryanair has assured that it will continue to maintain lower fares until traffic recovers, an example that its competitors will have to follow. In large cities, however, the metro and the bus services have frozen their prices or even lower them for groups such as students or retired people.
The increase in the food prices has been significant especially in the countries of Africa where rising food prices have led to situations of political instability that, in West Africa, have ended with several military coups. The FAO (the Food and Agriculture Organization of the United Nations) announced a few days ago that staple foods have reached their highest price in the last decade. The increase in the price of imported food is due to internal and external factors. Poor infrastructure makes it more difficult to transport food to rural areas: higher gasoline prices translate into higher prices for everything that is transported. The rise in shipping prices has affected the entire world, but in African countries the impact has been more severe than in Europe: some shipping giants have preferred to allocate ships to the most lucrative routes (China – United States, China – Europe) and abandon others. The result is that fewer containers arrive at African ports and this drives up the price of imported food.
It is one of the main current economic challenges as salaries affect everything from interest rates to how we plan for the future. The United States seems to be overcoming the recession and employment is improving, but the average wages have been stagnant for more than 40 years. Furthermore, in Japan and Germany, there has been no increase in 20 years. And it’s a global problem: “Over the last seven or eight years, wage growth has been very disappointing around the world,” says John Van Reenen, director of the Center for Economic Performance at the London School of Economics (LSE). Therefore, saving money has never been more important than now. Increase in the cost of living in European, American, African and Asian continent have made most people worried and careful about how they spend their money. If you are into games of chance, but are afraid of insecure websites you should check out the best online casinos in Kuwait 2022where you can learn everything about safety, game selection, payment methods and much more. You can choose from a list of recommended Kuwaiti casinos and claim a great bonus to start playing.
In conclusion, the costs of living have increased and they are very likely to continue rising in the years to come.