The world faces unique economic challenges in 2024, and one of the most discussed topics is inflation. Why are the prices of goods and services rising? What is the main cause of this phenomenon? Let's get to the bottom of it. Also find out how Switzerland almost won the battle against inflation here


Energy crisis


One of the main causes of inflation in 2024 is the energy crisis. Oil and gas prices have reached record levels due to geopolitical tensions and supply constraints. For example, sanctions against major energy producers have reduced exports and increased the cost of raw materials on the global market. This, in turn, affected all areas of the economy: from the production of goods to their transport.


Rising production costs


As energy prices rise, production costs inevitably rise. Companies are forced to pay more for energy, which increases the cost of goods. These costs are passed on to the end consumer, leading to higher prices in shops. In addition, shortages of raw materials and components caused by disruptions in global supply chains also contribute to higher product costs.


Logistical challenges


The logistical challenges facing the world are making the situation worse. High fuel prices increase transport costs, and delays in deliveries lead to shortages of goods and higher costs. For example, container shipping, a critical element of global trade, has faced challenges due to container shortages and increased delivery times.


Climate change


Climate change also plays a role in 2024 inflation. Extreme weather conditions such as droughts and floods have a negative impact on crop yields. This leads to higher food prices, which is particularly noticeable in countries that depend on food imports.