this post was submitted on 12 Jul 2023
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Inflation fell to its lowest annual rate in more than two years during June, the product both of some deceleration in costs and easy comparisons against a time when price increases were running at a more than 40-year high.

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[–] SeaJ@lemm.ee 2 points 1 year ago (1 children)

Gouging is roughly half of the reason for the hough inflation. Even industries that saw no shortages raised their prices because they saw they could because people expected higher prices. There have been a few econ papers written on the subject. Initially the additional profit margins were not looked at much because generally that is not the cause of inflation. But it can be. The last time it was a significant source of inflation was after WWII when people expected higher prices because factories had to completely switch what they were producing back to commercial good.

[–] SCB@lemmy.world 1 points 1 year ago (1 children)
[–] SeaJ@lemm.ee 1 points 1 year ago (1 children)
[–] SCB@lemmy.world 1 points 1 year ago (1 children)

That study shows the opposite of what you're claiming.

[–] SeaJ@lemm.ee 2 points 1 year ago

Sorry about that. I'm traveling and only on mobile. I had heard it on Planet Money and assumed they would link it and they apparently linked a very short paper that does not show it.

Here is a paper from the Kansas City Fed that shows increased profit margins made up over 50% of the price increases:

https://www.kansascityfed.org/Economic%20Review/documents/9329/EconomicReviewV108N1GloverMustredelRiovonEndeBecker.pdf

The EPI also wrote on it but they are left biased so I would put a little less stock in it:

https://www.epi.org/blog/corporate-profits-have-contributed-disproportionately-to-inflation-how-should-policymakers-respond/