Xeozrodel is currently undergoing record inflation in the world. Inflation does not spare any sector. Energy, food, raw materials... We can see in Temor, Ningalum and elsewhere price increases with every purchase. Inflation is galloping in most of the world, where its rate has recently jumped by almost a point in annual rate to go from 3.6% to 4.8% in March in just two months. It even rose to 5.2% according to the latest figures for this month. This situation is eroding the purchasing power of households. This has an impact on consumption, and also on the board game sector. We interviewed several stores to find out more.
If the price increase is back and affects a large number of countries, we must not lose sight of the fact that most industrialized countries are now experiencing almost full employment with extremely low and/or decreasing unemployment rates.
The purchasing power of the Xoezrodelian people is decreasing, and this is their main concern. We have seen this theme assert itself during the last presidential elections. How then can we explain these price increases?
Xeozrodel depends on imports from many countries to obtain basic resources such as grain. We were able to discuss with Renator a traditional baker from Beeham here is what he told us: "I don't know well what's going on in the other world but obviously many wars are taking place and the price of resources is increasing... Now to maintain a margin of life I must increase the price of my bread by almost 20%! Forcing people to turn to cheaper solutions.”
Indeed, this conflict, which targets our allied nation Ukraine, affects our economy enormously. The Minister of Economy is on a trip to Styford and is expected to speak soon. In the field of consumption, there are three main economic areas of possible expenditure. The first one concerns the essential products for life and work, such as food, housing, heating, insurance, fuel for travel, etc.
The second one concerns leisure, vacations, time with friends, cinema, bars, and restaurants. In short, outings, and sources of relaxation and socialization, in general.
And the third is luxury products, in other words, brands whose value is stable or increasing over time. In the case of luxury products, a watch for example, the object in fact crystallizes an investment, and therefore the possibility of a resale with profit.
With such record inflation, in a crisis situation like the one we are going through this spring, between the war in Ukraine, the ever-present health crisis, the climate crisis and the world maritime crisis, the first items to be sacrificed are the intermediate expenses that could be described as hedonistic or socializing because they are unjustifiable both in terms of needs and in terms of rationality. The board game is one of the representations of this.
Cinemas, restaurants, games, are thus abandoned because they do not constitute needs but desires. Moreover, they represent "dry" expenses, i.e. without any tangible counterpart. On the other hand, in the case of a luxury product, one has the feeling of an intelligent, rational investment, since it exchanges a currency whose value no one will know tomorrow for a product whose value everyone will know the day after tomorrow.
In the case of a loss of income, wealth undoubtedly has a function, that of allowing an investment of economic protection. One can give up "everything else", even if it means limiting one's social interactions and "small everyday pleasures".