As we start to move into summer, seasonal patterns make clear there’s now a strong chance of higher prices for a range of products and services. This phenomenon, known as seasonality, is particularly evident in sectors with a high demand for products and services during certain times of year.
Case in point: the food, beverage and restaurant sector typically experiences a surge in demand in the summer months. This tends to come on the back of an increase in travel, outdoor activities and social gatherings. This in turn drives up demand for food, drinks and other products, leading to a rise in prices. Similarly, retailers often hike prices in the run-up to Christmas for example, as shoppers look to buy gifts for their loved ones.
The same principles apply to the energy sector as well. In winter, for example, people typically need to use more energy to heat their homes, while in summer they may require more energy for cooling. This leads to a rise in demand, which then translates into higher prices.
It’s worth noting that seasonality can also have the opposite effect in some cases. For instance, prices in the housing market typically peak during spring and summer, as more supply comes onto the market. Similarly, demand for air travel declines in winter due to a combination of adverse weather conditions and the fact that fewer people choose to go away during this period. This in turn often leads to lower ticket prices.
All in all, seasonality can have a significant impact on prices. It pays to be aware of this phenomenon if you’re looking to purchase items or services during certain points of the year. That way, you’ll be able to better anticipate price changes and plan accordingly.