This is “greedflation”
In the United States, the word “greedflation” has begun to be used more and more in the debate about inflation and what drives it. But what does that mean? And what responsibility do companies have for rising inflation?
High fuel and energy prices are usually one of the main reasons why inflation is rising. But now more and more people are starting to talk about the fact that companies’ pricing can also play an important role.
Everyone understands that companies need to transfer some of their increased costs to us consumers, but they seem to transfer more than is reasonable
Record inflation, is now used almost every day in the press, price increases have now been at the center for a while. But lately, the numbers has been about the prices you and I paid in previous months.
At the beginning of Russia’s offensive war against Ukraine, in cases its about 25 percent (energy is not included). In recent weeks, the price of raw materials has fallen sharply, as in the case of crude oil. Some other prices have fallen by 20 percent!
Unfortunately, downward adjustments are much slower than the increases. When the oil price on the world market rises, your end supplier is quick to raise the price, however, the reductions in many cases take months. Meanwhile, corporate profits rise by soaring amounts. An example is cooking oil, such as corn oil. Before the crisis, the price was about 1.0 € / liter. Now the same product with the same production date costs 3.20 € / liter.
Is this fraud or just “greedflation”??
It is up to you to judge, but I think price adjustments should have better control systems, from the authorities.
Thanks for reading my post.
I will be back soon, Windmush/Curt
