Tom Perkins at The Guardian reports on a new report that claims “resounding evidence” shows high corporate profits are a main driver of ongoing inflation and that companies continue to keep prices high - even as their inflationary costs drop.  The report, compiled by the progressive Groundwork Collaborative Think Tank, 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 Coronavirus Pandemic, according to the report.  Prices for consumers rose by 3.4% over the past year, but input costs for producers increased by just 1%, according to the authors’ calculations, which were based on data from the Bureau of Economic Analysis and National Income and Products Accounts. “Costs have come down substantially, and while corporations were quick to pass on their increased costs to consumers, they are surprisingly less quick to pass on their savings to consumers,” the Groundwork Collaborative Think Tank said.

To Directly Access This Labor News Story, Go To: Half of recent US inflation due to high corporate profits, report finds | Inflation | The Guardian

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