6/26/2023 0 Comments Greed corp mobile![]() But average hourly earnings grew by just 0.3% in March, according to the latest Bureau of Labor Statistics data, and currently sit at year-over-year growth of 4.2% - well below the nearly 6% jump from March 2021 to March 2022. Economists and the Federal Reserve suggested workers demanding higher wages was the "key" to inflation. Labor-market disruptions were a prime suspect in soaring inflation last year. But more than three years since the dislocations began, many of the logistical and labor messes have normalized. The sudden economic stop-start of the pandemic caused a dramatic mismatch between supply and demand, fueling a once-in-a-generation inflation flare-up. And given the relative impunity big business enjoys, there may not be much relief for Americans' wallets anytime soon. ![]() The data is increasingly pointing to one culprit: corporate profit hoarding. ![]() While many of the problems that helped trigger the upward spiral have abated, prices are still high and getting higher. While Drew told me he's seen prices stabilizing in 2023, there's one thing they're definitely not doing: coming down.Īnyone who has reached for a carton of eggs, filled up their tank with gas, or tried to buy pretty much anything has felt the sting of that inflation over the past few years. "They can sell half of what they need to sell, but they're hitting those profit numbers already," he said. But instead of trying to sell a higher volume at a lower price point, it seemed as if companies realized they could raise prices and still bring in the same amount of money. If they weren't selling enough, they'd offer deals to entice consumers. In the past, Drew said, food manufacturers' business success was gauged by how many products they sold. There was inventory on the shelves and shoppers were doing less compulsive buying. From what he could tell, cost pressures from the war in Ukraine and the supply-chain crisis were easing. But around October, Drew - whose last name is known to Insider but withheld over concerns about professional repercussions - noticed something odd. But when COVID-19 hit, companies started raising prices every three to four months, which Drew said was "unheard of."įor a while, the price hikes made sense: Supply chains were snarled, manufacturers were paying more for the ingredients needed to make their products, companies were having to offer big wage hikes to lure workers, and consumers were buying everything in sight. "Usually in the industry, a price increase would happen maybe once a year, maybe once every two years," he told me. But nothing in his two decades in the industry prepared him for companies' response to the pandemic. It often indicates a user profile.ĭrew has worked in the wholesale grocery business for over 20 years, making sure food hits the shelves on time and at the best prices. Account icon An icon in the shape of a person's head and shoulders.
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