With sharp increases to the price of goods and services, where’s all this extra money I’m spending going?

Question

Don’t try to tell me my wages are sharply increasing either, because they’re not! Nor are my friends, family, or neighbors.

In: 113

Answer 1

I work for a FTSE 100 and the extra money is going to pay for 2 things: utilities and materials. In food there were multiple harvest failures and/or lower yielding harvest which has increased the scarcity of raw materials. Utilities for consumers has risen fourfold in the UK and so have those costs on the production line that runs 24 hours to produce consumer goods. Businesses are unwilling to decrease their dividend or profits significantly so the cost of the goods rise to support this. Logistics costs will also rise the next time contracts are due.