The statement in the title is usually a clear indicator that someone (willfully or otherwise) doesn't understand inflation. Nominal profits are higher when inf

The statement in the title is usually a clear indicator that someone (willfully or otherwise) doesn't understand inflation. Nominal profits are higher when inflation is higher. You have to take into account inflation when measuring profits. Sure, some companies have an increased profit margin when adjusted for inflation, others don't. And there's the cantillion effect, those upstream on the debasement pipeline do profit from inflation. About the only exception to this is that when prices do go up, if production costs come back down companies very rarely bring prices back down, they acknowledge that people see a new normal and then pocket the difference.