We have cost-push, demand-pull, headline, and core inflation to name just a few descriptors. We have also been exposed to shrinkflation, products at the same price but have less. Now we are hearing about greedflation from the chief economist of the OECD.
We have heard this term before, but it now shameful to try and keep your margins the same during an inflationary period. If your costs are going up, shouldn't firms try and pass those costs onto customers? Customer demand may fall and the pass-through may not be possible, but it is in the interests of shareholders for managers to make the attempt to pass on costs. The customers will decide whether the margins can be maintained. Is this process greedy or just the normal behavior of businesses doing their job?
No comments:
Post a Comment