Groundwork on CPI: Corporations are Hiking Prices, Making Record Profits

Today’s Consumer Price Index shows year-over-year inflation increased to 7.0%. Groundwork’s Chief Economist Rakeen Mabud responded with the following statement:

“This morning’s CPI release reinforces the urgent need to acknowledge and address the role of corporate greed in driving up prices. For too long, we have tolerated an economy optimized to boost short-term profits at the expense of workers, consumers, and families. Corporate profiteering is driving high prices. And consumers are paying the price.”

Email press@groundworkcollaborative.org to speak to Dr. Mabud about one of the driving factors of rising prices: mega-corporations with massive market power. Read our latest findings here.

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Below is a sampling of reporting on recent price hikes that got it right:

• The New York Times: Fighting Inflation Means Taking On Corporations. Yet inflation doesn’t rise and ebb just because of monetary policy. It’s largely the result of choices businesses make. And history shows presidents have the power to stem inflation by taking on corporate power — if they choose. [12/24/21]
• Fortune: Meet the 4 meat empires Biden says are unreasonably jacking up prices for Americans. President Joe Biden announced plans this week for new rules and $1 billion in funding for independent meat processors and ranchers in an effort to combat what he calls a lack of “meaningful competition” in the meat sector. [1/6/22]
• Data for Progress: Messaging on Inflation Should Stress Policy Solutions, Record Corporate Profits. These findings offer a messaging framework for lawmakers and activists to acknowledge the stress that rising prices are having on families while tackling the root causes of inflation: corporate power and decades of underinvestment. [1/6/22]
• The Washington Post: White House allies split over inflation plan as Biden trains attacks on corporate greed. “The truth is the link between price hikes and profiteering is hiding in plain sight. It’s clear as day in earnings calls where CEOs can’t stop crowing about their ‘pricing strategies,’” said Lindsay Owens, an economist at the Groundwork Collaborative, a left-leaning group that has encouraged the administration to take a tougher position. [1/10/22]

Groundwork Collaborative: The Groundwork Collaborative’s mission is to advance an economic vision for strong, broadly shared prosperity and true opportunity for all. Visit our website and follow us on Twitter @Groundwork.