Central Bankers Worry Corporate Pandemic Profits Entrench High Prices, Slowing Inflation Fight
-
Central bankers worried "greedflation" from excessive corporate pandemic profits has baked high prices into the system long-term
-
Companies are now more willing to frequently raise prices since pandemic disrupted pre-pandemic norm of only annual changes
-
If companies maintain high margins by keeping prices high, it will substantially slow return of inflation to 2% target
-
Economists warn slower inflation from shrinking margins could incentivize companies to cut costs via layoffs
-
Some European retailers boycotting overpriced products, but U.S. chains not yet taking similar punitive steps