New Report Reveals: Nearly Half of the Recent Increase in US Inflation Can Be Attributed to Skyrocketing Corporate Profits.

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here's this new report that's making some noise, and it's saying there's pretty solid proof that big companies making big profits are a big reason why prices keep going up. Even when the companies aren't spending as much on stuff, they're still keeping prices high.

This report comes from the Groundwork Collaborative, a group of folks who like to think about things in a progressive way. They crunched some numbers and found out that about 53% of the price hikes we saw in the second and third quarters of last year were because companies were raking in the big bucks. Now, that's a lot compared to the 40 years before the pandemic when only 11% of price increases were linked to profits.

Now, picture this – a guy walks past The Federal Reserve Bank of New York, and right there, we're talking about the Federal Reserve Bank of New York in the city. In the background, US inflation is doing its thing, ticking up to 3.4% in December. The people who make big decisions are scratching their heads, thinking about maybe cutting interest rates to deal with it.

So, here's the deal – the prices you and I pay for stuff went up by 3.4% over the past year. But get this, the cost for companies to make that stuff only went up by 1%. How do we know? Well, the clever folks behind this report did some math, using data from the Bureau of Economic Analysis and National Income and Products Accounts.

In a nutshell, this report is saying that these big companies are making more money, but instead of passing on the savings to us, they're keeping the prices high. And that, my friend, is part of why we're seeing inflation on the rise.

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