Way too complicated to explain very simply but I'll try:
Demand and supply:
If let's say, 95% of Americans decided they want to buy a AR15 rifle, the price of that gun would go up until the supply could catch up to the demand.( More people want item X, the price of the item X increases)
And let's not forget the gas/oil issue:
Before the Russian invasion of Ukraine, people liked Russia because of the cheap oil and gas, but after the sanctions, a big supplier was more or less taken out of the equation/ open market, so, prices of the items increase.
Item supply:
Grain could be a good example. During the UN agreement with Turkey and Russia, the price of grain-based products dropped because the key ingredient was more readily available(by amount) until the recent withdrawal.
During the first stages of the COVID pandemic, masks were also in very high demand, hence people buying them out and reselling them with a very high margin to other people.
tallpotato17 t1_iuf97hr wrote
Reply to ELI5 why do prices rise and what can be done about it? by AnEntirePeach
Way too complicated to explain very simply but I'll try:
Demand and supply:
If let's say, 95% of Americans decided they want to buy a AR15 rifle, the price of that gun would go up until the supply could catch up to the demand.( More people want item X, the price of the item X increases)
And let's not forget the gas/oil issue:
Before the Russian invasion of Ukraine, people liked Russia because of the cheap oil and gas, but after the sanctions, a big supplier was more or less taken out of the equation/ open market, so, prices of the items increase.
Item supply:
Grain could be a good example. During the UN agreement with Turkey and Russia, the price of grain-based products dropped because the key ingredient was more readily available(by amount) until the recent withdrawal.
During the first stages of the COVID pandemic, masks were also in very high demand, hence people buying them out and reselling them with a very high margin to other people.