Half of recent US inflation due to high corporate profits, report finds

The Groundwork Collaborative thinktank found prices for consumers rose by 3.4% over the past year, but input costs for producers increased by just 1%. Illustration: The Guardian

A new report claims “resounding evidence” shows that high corporate profits are a main driver of ongoing inflation, and companies continue to keep prices high even as their inflationary costs drop.

The report, compiled by the progressive Groundwork Collaborative thinktank, found corporate profits accounted for about 53% of inflation during last year’s second and third quarters. Profits drove just 11% of price growth in the 40 years prior to the pandemic, according to the report.