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Why COVID-19 being consider the main factors of the inflation? And also discuss that, why oil...

Why COVID-19 being consider the main factors of the inflation? And also discuss that, why oil prices decline doesn’t have any effect on the prices of commodities?

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Due to the outbreak of covid 19, nations face the problem of recession, in which there is no output and employment. Therefore, shortage of supply is there. But people have their previous savings and demand goods. But due to less of supply, people have to pay double prices for the same product. Therefore, covid 19 is major cause of inflation.

Secondly, people are at home, no one is going to work place and due to that vehicles are not used. Therefore there is decrease in oil prices but at the same time demand of essential goods have not fallen even after the shortage of production. Therefore, oil prices decline doesn’t have any effect on the prices of commodities?

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