The coronavirus outbreak has caused severe stress on household budgets. In January, the consumer inflation rate hit 5.4%. The surge in the prices is visible.
Since several cities have been completely blocked and shut down to safeguard it from the virus, many transportation links have been disrupted.
Several numbers of businesses have also been shut down. People are desperate to stock up the basic commodities at home. Due to the sudden shutdowns which might make it difficult for them to step out of their house later.
Due to the increase in demand suddenly and since everyone wants to have good enough stock at home, the prices have soared up. An outbreak, therefore, does not cause just health-related implications but also hits the finances adversely.
How Has It Affected The Mainstream Food Products?
Pork is consumed daily in China and due to the pig disease, the costs have hit the skies, numerically by 116% as compared to the previous year. In addition to this, vegetables too have become 17% more costly.
What About General Market?
Health care is an absolute need of the hour. In light of the present circumstances, the cost of health care saw a rise of 2.3% and clothing as well was expensive by 0.6%.
The outbreak has also impacted international trade and this would cause a lot of stress on the Chinese economy. Thankfully, price gouging is going to be considered a serious offence. The offenders are bound to receive a heavy punishment.
About The Big Firms
Some of the giant E-commerce companies such as Alibaba and Meituan have said that they would be keeping a close look at the prices. They have also promised that they would remove any overpriced products. They plan to ban the merchants who are trying to seek gains.
The need of the hour is to stay protected from being infected. We must do everything possible within our capability to educate people about the precautions.