Archived version: https://archive.ph/0d18B
Archived version: https://web.archive.org/web/20240119122923/https://www.theguardian.com/business/2024/jan/19/us-inflation-caused-by-corporate-profits
If you want to know how bad we're being fucked, search for the PPI, the producer price index. CPI, the one we always hear about, is the measure of inflation to us, the consumer. The PPI is the measure of inflation to producers, what they pay for goods and services to produce the goods and services we buy.
The PPI has been back to "normal" for a while now. Pretty much as soon as the post COVID logistics issues were mostly ironed out. The difference between PPI and CPI changes is pure profit.
We don't get daily articles on the PPI though, I wonder why.
Edit: tell people about PPI whenever you can, online or off, the more people know, the better. It's easy enough to say inflation is just down to greed but being able to back it up by comparing two simple charts will help people really understand.
Corps took a hit due to covid lockdowns, they wanted to get the profit they missed back and then just said fuck it, they are used to these prices is what I'm hearing.
Another so called "economics think-tank" that thinks [consumer price]-[raw material cost]=[profit]. They are just ingnoring all of the other variables in equation. P&G (their biggest example) laid off a huge percentage of their workforce during the pandemic and increased the price of the products. Now they are nearly back at 100% of their workforce but everyone is being paid more. It ends up being a wash for consumers at that point. That's not even including cost of energy, cost of machine maintenance, and all of the other little things that have increased over the last few years. Nonsense.
So according to the report, since 2019 54% of price increase are due to labor, 34% to profit and 12% to non-labor.
Those 12% that started the current inflation loop are relatively small overall.
