A Rarely Discussed Inflation Driver: Corporate Profits

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  A Rarely Discussed Inflation Driver: Corporate Profits

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We regularly delve into the various factors that drive inflation. The rising cost of raw materials and labor, the cost of energy to make things and the cost of transportation to ship them, supply chain problems and even the war in Ukraine… But another factor that is often overlooked. there is. It’s corporate profit. When inflation is high, businesses may raise prices to pass on higher prices to consumers without hurting their own profits. And it is understandable. And The New Yorker’s Sheila Kolhatkar rightfully said, “Capitalists will do what capitalists do.” But without fully registering that we are doing it, companies use high inflation as a cover to price their products even higher than they need to recover their higher costs. You must to do something before you go on. December 11, 2022

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