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Sure but companies are also still reporting record profits in many cases right now so it's clearly not just input costs driving up prices.
by rtkwe 4y ago
Sure but companies are also still reporting record profits in many cases right now so it's clearly not just input costs driving up prices.
- deleted 4y ago[deleted]
- weberer 4y ago>companies are also still reporting record profits Adjusted for inflation?
- rtkwe 4y agoTheir profits account for inflation already in some ways because the increased costs are already accounted for when we're talking about profits by definition.
- hattmall 4y agoYes, but you have adjust those earnings for inflation... It's even more complex because inflation is variable across industries.
- rtkwe 4y agoTheir increased costs are already factored in because we're talking about profits though so I'm not sure how much use deducting that again would be for determining that.
- mrep 4y agoIt is not about deducting but adjusting. In an inflating currency with a constant profit margin, you are basically always going to report "record profits" because a 10% margin on $11 is nominally more than a 10% margin on $10 from a year ago but if the currency inflated 10% in that year, your profit isn't really record because it buys you the same amount of goods and services as it did a year ago.