What is the main reason for the rising price of raw materials?

1.Supply-side reforms have reduced production capacity and eliminated some enterprises that are difficult to meet environmental standards. As a result, raw material prices have risen. The accumulation of raw materials and speculation of commodities in the futures market are the reasons for the recent rise in commodity prices. This trend will continue for at least two years, and the pressure of RMB depreciation will increase. The global economy has not recovered in a downturn in the real economy.

2. Inflation is divided into three types: cost-driven inflation, rising demand and structural imbalance. So the rising cost of raw materials is one of the causes of inflation. As for the above three reasons, one of the deep reasons is the over issuance of money.