Corporate Profiteering Amplifies Global Inflation, New Report Reveals
A report by the Institute For Public Policy Research and Common Wealth suggests that major energy and consumer companies contributed to higher and more persistent inflation in 2022 by passing on greater cost increases than necessary to protect their margins. The report argues that market power, particularly in the oil and gas, food production, and commodities sectors, amplified inflation. The analysis of financial reports from 1,350 companies found that nominal profits were on average 30% higher at the end of 2022 compared to the end of 2019, indicating that higher prices were shouldered by consumers. The report highlights the need to consider the impact of corporate profits and market power in the current debate on inflation.