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Reblogged by slightlyoff@toot.cafe ("Alex Russell"):
kentbrew@xoxo.zone ("Kent Brewster") wrote:
Half of recent US inflation due to high corporate profits, report finds.
“This is a form of implicit collusion,” she said. “Firms do not even need to talk to one another to know that a cost shock is a great time to raise prices. But when costs fall, price-setting firms do not have any incentive to decrease prices.”
If no firms launch a price war, Weber added, then companies “hold the line” on prices and widen margins. She pointed to food processors as an example.
https://www.theguardian.com/business/2024/jan/19/us-inflation-caused-by-corporate-profits