Inflation of costs - a process in which the general level of prices due to the fact that increased spending on production and sales.A similar problem may arise due to the fact that the total supply exceeds the demand.
Inflation affects almost all kinds of costs the company.Consider the main causes of this process.Virtually all organizations have some services, such as transportation, communication, general use and many others.Often such products is characterized by the dominance of the price due to the dictates of monopolization.That is, it increases the cost of the services that are used by the company, and the head is unable to choose a more low-cost options.Then, the organization is forced to either raise the price of their goods, or operate at a loss.
In those countries where there are labor unions, cost inflation may be due to the need to raise wages for employees.However, for Russia it is irrelevant.In our country, at this time, unions have little influence on the relationship between employer and employee.
As you know, the majority of companies are involved borrowed funds.Consequently, cost-push inflation can occur due to monopolization in the banking sector.Interest rates are rising, and the organization will inevitably have to raise their costs and therefore increases the cost of production.
for Russia is very characteristic of inflation costs occurring due to excessive tax burden.Why is this happening?Most owners include companies pay taxes in their spending.Therefore, it is necessary to increase the cost of production to cover all costs.
causes of inflation are and customs duties.While, when it makes them more expensive, and increases the cost of the product or service organization.It should be noted that this problem is particularly acute began when introduced law on tax duties between the CIS countries.
So, let's sum up.Inflation is often caused by non-monetary factors.This may be a salary increase, which is ahead of productivity growth, the disparity of such factors as the aggregate supply and demand.The proposal in this case is higher than the demand.It is worth noting that there is no inflation of costs as a result of excess cash.Consequently, it does not devalue the currency immediately.
give the simplest example of such inflation.There was any serious problem with the road, for which the supply of products in a particular area.Then it looks for a detour.Its length can greatly exceed the length of the first road on which the goods were delivered initially.Therefore, in this region soaring prices for the vast majority of types of products, due to a significant increase in transport costs organizations.In this case, enterprises typically reduce profitability.In the worst case they do suspend their work due to the uncompetitive prices.
Inflation can be opened and closed.For the development of a market economy with free pricing more typical of the first option.Open inflation suggests unregulated increase in the cost of production.It is relatively easy to fix.Closed inflation is characteristic of a centralized economy.It is expressed not through price increases, and in the production deficit.With closed inflation fight is difficult, due to the fact that in this version there are no natural mechanisms through which you can achieve a sustainable balance.
