A new report from British think tanks, the Institute For Public Policy Research and Common Wealth, argues that 'excess profits' retained by major energy, food, and commodity companies have amplified inflation in 2022. The report analyzed financial reports from over 1,350 large companies worldwide and found nominal profits were, on average, 30% higher at the end of 2022 than in 2019, indicating higher prices have been passed onto consumers. It argues companies in sectors like oil and gas, food production, and commodities had temporary market power after the pandemic that allowed them to raise prices more than needed to maintain margins, exacerbating inflation. The issue of 'greedflation' or companies raising prices excessively, is contested among economists, though some central bankers have cited it as a potential inflationary factor.
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00:00 It's Benzinga and here's what's on the block.
00:02 A new report from British think tank, the Institute for Public Policy Research and Commonwealth,
00:07 argues that excess profits retained by major energy, food, and commodity companies have
00:11 amplified inflation in 2022.
00:14 The report analyzed financial reports from over 1,300 large companies worldwide and found
00:19 nominal profits were on average 30% higher at the end of 2022 compared to 2019, indicating
00:25 higher prices have been passed on to consumers.
00:28 It argues companies in sectors like oil and gas, food production, and commodities had
00:32 temporary market power after the pandemic that allowed them to raise prices more than
00:36 needed to maintain margins, exacerbating inflation.
00:40 The issue of greedflation or companies raising prices excessively is contested among economists,
00:45 though some central bankers have cited it as a potential inflationary factor.
00:49 For all things money, visit Benzinga.com.
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