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‘Greedflation’ caused more than half of last year’s inflation surge, study finds, as corporate profits remain at all-time highs

But after falling from its blistering pace in 2022, consumer inflation has gotten stubbornly stuck in the 3% range—rising unexpectedly for the last two months even as wholesalers’ prices stay flat or fall. That is greedflation’s music, offering a clear bit of evidence that excessive profit-taking is happening above the raw cost of goods.

January 20, 2024 Fortune

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Corporate profits account for half of US inflation: Report

In a startling revelation, the Groundwork Collaborative, a progressive think tank, has attributed roughly 53% of the inflation experienced in the United States in Q2 and Q3 of 2023 to the burgeoning profit margins of corporations. This report, highlighted by The Guardian and discussed on MSNBC, suggests that despite a relaxation in costs, corporations have sustained high prices, unduly burdening consumers.

January 20, 2024 News Nation

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Unveiling inflation’s true culprit: corporate profits over people

"Groundwork’s scrutiny of corporate earnings reports from 2021 onwards highlights a startling trend: a substantial portion of price increases was driven by profit motives rather than rising business costs. This shift marks a departure from the historical norm, where profits contributed far less to price growth. The analysis underscores the extent to which corporate profit-seeking behaviors have influenced recent inflation trends."

January 19, 2024 Nation of Change

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Economic vibes are finally improving, consumer sentiment surges

“There is still a debate on the Internet about whether consumer sentiment is actually good, and we should listen to families who say they’re struggling. But I think it’s clearly getting better and we’re on a pretty good path for November,” said Elizabeth Pancotti, strategic adviser at the Groundwork Collaborative, a left-leaning think tank.

January 19, 2024 The Washington Post

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Half of recent US inflation due to high corporate profits, report finds

A new report by Groundwork Collaborative claims “resounding evidence” shows that high corporate profits are a main driver of ongoing inflation, and companies continue to keep prices high even as their inflationary costs drop. The report found corporate profits accounted for about 53% of inflation during last year’s second and third quarters. Profits drove just 11% of price growth in the 40 years prior to the pandemic.

January 19, 2024 The Guardian

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Corporate Greed Is Driving Recent Inflation, Report Finds

“While prices for consumers have risen by 3.4 percent over the past year, input costs for producers have risen by just 1 percent,” the authors write. They [Groundwork] argue that corporate profits drove more than 53 percent of inflation in the second and third quarters of 2023, whereas they drove 11 percent of price growth in the 40 years prior to the pandemic.

January 19, 2024 Daily Beast

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Analysis Shows How Corporate Profits Drive Inflation—Even as Business Costs Go Down

The answer, said economic justice think tank Groundwork Collaborative, is that high prices linked to the coronavirus pandemic were never just the result of higher labor and production costs—but were partially caused by corporations' deliberate price gouging.

January 18, 2024 Common Dreams

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The Beat with Ari Melber

Groundwork Collaborative Executive Director Lindsay Owens joins The Beat to shed light on inflation and discuss the role of corporate price gouging in high prices.

January 18, 2024 MSNBC

Press Release

New Groundwork Report Finds Corporate Profits Driving More Than Half of Inflation

“Inflation is coming down, but families are still feeling the pinch at the checkout line,” said Lindsay Owens, executive director of Groundwork Collaborative. “Even as supply chain snarls have receded and the U.S. economy has stabilized, our research finds that businesses continue to pad their bottom lines at the expense of American families.”

January 18, 2024 Groundwork Collaborative

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Inflation rose slightly in December as fight to tame prices continues.

Lindsay Owens, executive director of the Groundwork Collaborative, a left-leaning think tank, said the continued strength of the labor market and the persistence of housing inflation in particular suggest steep borrowing costs aren’t the perfect match for the current economic picture. She said, “We’re at great risk of higher for too long, at this point.”

January 11, 2024 The Washington Post