Feeling the pinch at the pump?
Higher petrol prices can cause short-term inflation, meaning everyday items cost a bit more for a while. Why? Because petrol keeps our economy moving – it fuels trucks delivering goods and factories making products. When petrol gets expensive, these businesses raise their prices to stay afloat. These higher costs then get passed on to us as consumers.
The good news? This inflation is usually temporary. Once petrol prices settle, so should the cost of other things. But watch out for “sticky” prices – businesses might keep prices high even when their costs go down.
To cope, be mindful of your spending and try to save on gas. Carpool, use public transport or combine errands. By understanding the link between petrol and inflation, you can be a savvier shopper during these temporary price bumps.