Groundwork’s Lindsay Owens on Corporate Profits Data

Groundwork’s Lindsay Owens on Corporate Profits Data: “Inflation has more room to fall if corporations stop their excessive profiteering”

Today, the Bureau of Economic Analysis (BEA) released new data showing that domestic nonfinancial corporate profits increased $136.5 billion in Q4, compared with an increase of $90.8 billion in Q3. Groundwork’s Executive Director Lindsay Owens reacted with the following statement:

“Even as supply chains have normalized and input costs have fallen, corporations are still padding their profits on the backs of families. Falling inflation has been a welcome sight, but it has more room to fall if corporations stop their excessive profiteering.”

Email press@groundworkcollaborative.org to speak with one of Groundwork’s experts about the role of corporate profits in rising prices. 

Background

• In January, Groundwork found that from April to September 2023, corporate profits drove 53% of inflation. Comparatively, over the 40 years before the pandemic, profits drove just 11% of price growth.
• The FTC found that profits rose for food and beverage retailer revenues increased to more than 6% over total costs in 2021, beating their most recent peak in 2015. Even as inflation has fallen, retailer revenue reached 7% over total costs from Q1 to Q3 last year.
• Last month, Groundwork released a report that found families are now paying 25 percent more for groceries than they were prior to the pandemic, compared to 19 percent overall inflation.