The numbers are out. Corporate profits drove 54%, or more than half, of inflation increases. Yes, supply chain issues caused some increases as well at 38%, but labor costs (wages), which is usually the bogeyman when it comes to inflation, only contributed 8%. Source: https://www.epi.org/blog/corporate-profits-have-contributed-disproportionately-to-inflation-how-should-policymakers-respond/ So the next time they say raising wages contributes to inflation, you can point to this data and say: “Well, not this time.”
The numbers are out. Corporate profits drove 54%, or more than half, of inflation increases. Yes, supply chain issues caused some increases as well at 38%, but labor costs (wages), which is usually the bogeyman when it comes to inflation, only contributed 8%.
So the next time they say raising wages contributes to inflation, you can point to this data and say: “Well, not this time.”