“It’s Officially Accepted!” From January 1st for the same residents will now have to pay much more!

Although you think that it can’t get worse, it turns out that it can! It is officially accepted that from January 1, a specific service needed by all residents will become significantly more expensive. It turns out that you will immediately overpay for the same thing, and here we are not talking about a little bit, but a lot!

The Saeima will enter into force the proposed amendments from January 1 of the following year. It is natural to question the rationale behind the current increase in service charges. However, it is important to note that this increase in spending is not limited to a specific industry or area and can be attributed to many factors and companies.

It is very closely related to inflation, however, it is often clearly visible that the price of services in Latvia is usually raised without any reasons!

Inflation is a phenomenon when overall price levels increase and the purchasing power of money decreases. A number of factors can affect inflation and are generally classified as supply and demand factors.

Increased demand: When demand exceeds supply, companies can raise prices because demand is greater than existing resources can supply.
Increased expenses: If companies experience increased costs (e.g. labor costs, raw material prices), they can pass those costs on to consumers by raising prices.

Supply Factors:
Limited supply resources: When resources or raw materials needed to produce goods or services are scarce, companies can raise prices.
Increase in production costs: As production costs increase, companies may be forced to raise prices to maintain profits.

The global phenomenon of inflation has a pervasive effect on the prices of goods and services. Consequently, individuals experience an increase in the cost of living as they have to pay higher prices for the same products and services.

In particular, the cost of energy, especially oil and gas, has a significant impact on many sectors, including transportation and manufacturing. As energy costs rise, so do both the cost of living and the cost of production.

And right now we will talk about the fact that the price of a very essential service will change drastically and we will have to pay a lot more, which no one wants to overpay for!

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