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> Major companies in the energy and food sectors amplified inflation in 2022 by passing on greater cost increases than needed to protect margins, according to a
by RcouF1uZ4gsC 3y ago
> Major companies in the energy and food sectors amplified inflation in 2022 by passing on greater cost increases than needed to protect margins, according to a new report.
>This does not necessarily mean that overall profit margins have risen, but it does mean that higher prices have been shouldered by consumers, the authors said.
Sounds like the profit margins are the same, but because the absolute numbers are higher for everything, the absolute number for profits is higher as well. That actually seems like what is expected to happen during inflation where the prices across the economy go up by some multiple.
- tonyedgecombe 3y agoWhich implies the causation in the title is backwards.