C.P.I (customer price index) of-USA-dropping-sharply-in-Oct 2022

What is CPI (Consumer Price Index)?

It is the number that refers to the inflation, if it is over 3% it means the inflation is a little serious, if over 5 % it means that things become very expensive.

So the higher number will affect the economy of a country.

According to the news, the CPI of the US is better than expected.

It is released by the media that the CPI is 7.7% which is better than the expected 8%.

It means things get controlled and stable instead of getting more expensive.

However, we will still hope other countries will be the same, the CPI is getting better.

As global CPI is now around 120 and hopes it will go better when releasing in this month around Nov.17±5 ays

What are you feeling?

In Taiwan, we are lucky that we only got 2.8 % of the CPI which is much much better than other countries, but people will not feel the same, according to the news that the egg price has risen over 33% compared to before.

So sometimes the C.P.I might not mean the people's feelings.

if you feel all everything is more expensive than before, and your salary is not been risen, you won't feel the number is Really in reality.

Then you MIGHT not spend much on things which are not necessary.

However, most people feel the staff have not been getting higher or more expensive. There are still controlled and stable now, according to our surveys.

Why did the Inflation happen?

Due to the Covid-19, this brings a lack of labor so the shipping price rose a lot because the sea port did not have enough manpower to handle the containers, the shipping company felt that containers going from countries to another country will need to take more time than before, so they rose the price.

And people all stay home so they would need electronic devices to work, such as a laptop. So electronic product companies like Asus or Benq produced a lot and all shipped at the same time making the seaport many jammers.

Therefore, all the electronic items do not arrive on time but took more than 3 months from Taiwan to the US.

Those are the key elements that the inflation is getting serious.

ALL governments started to print their money! (Quantitative easing monetary policy)

Governments started to print their money to save all of the enterprises when the Covid-19 just happened. 

So there was more money coming to the market, and the stock market and house prices went extremely higher than before.

After 3 years, the Government starts to get the money back and rise the interest in order to control the inflation issue have happened.

The world seems soon be back to normal.

We have all noticed that inflation now is controlled but there is still too much stock on electronic items.

According to some companies, like Asus, it will need to be consumed till the next 2 quarters around June.

But the good thing is their stock before is 200 billion now is 170 billion and after the stock has been sold out, the business becomes normally

Luckily for the bubble tea business

As the expiration date for the bubble tea is around 1 to 1.5 years, otherwise the other items can be more than 5 years, hence, we have to use them ASAP.

All of the bubble tea shops are still expanding but the winter time is always a difficult time for the cash flow, we Fokus always try our best to support our partners.

As the cash flow is always a key to a shop.

when you are expanding sometimes you will need some support from your supplier or partners, that's the reason why we always try our best to do it.

All we hope we can grow up together, we built from zero to now 12 years, so we know what is the process of building a business look like.

As a successful businessman said, today is difficult tomorrow is much more difficult, and the day after tomorrow is beautiful but most people die tomorrow evening.

Hope all of us can be successful soon in the future.

Expecting to work with all of you!