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I think an underrated aspect of inflation is the need (or opportunity) of corporations to increase margins. Interest rates are going up, so the stock market exp
by tjansen 3y ago
I think an underrated aspect of inflation is the need (or opportunity) of corporations to increase margins. Interest rates are going up, so the stock market expects corporations to increase earnings per share and dividends as well. Also, a lot of corporations are in debt, especially after the covid years, and need higher margins to pay it off, or at least pay higher interest rates. The craziest price increases I have seen in German supermarkets were Pepsi Corp products, Mars and Coke. They are all way higher than no-name alternatives (like 1.5l Coke bottles for 1.79, while no-name brands are 0.59 EUR; and yes, I know that's still cheap compared to many other countries). The prices of a lot of store-branded products have actually come down, but the prices of international brands keep rising.