Part 7/10:
The implications of rising energy prices are far-reaching, primarily concerning inflation. Higher energy costs affect virtually all aspects of the economy since energy is integral to the production and transportation of goods. If prices continue to climb, consumer purchasing power diminishes, which could lead to decreased domestic demand and poorer living standards.
The industrial sector is similarly affected, particularly in energy-intensive industries such as chemicals and steel. With rising costs, production has plummeted, leading to plant shutdowns and massive layoffs as businesses attempt to cope with these financial burdens.