Re:Inflation rose to 7.9% in February, led by food and energy
by marcosdumay on Thursday March 10, 2022 @02:03PM
(#30630995)
> Is that a normal occurrence in periods of high inflation?
Yes, even during stagflation. Inflation means the price of some things rise really fast, and profits grow together, while other things rise very slowly, profits go negative and the companies stop being measured on that indicator.
Besides, as a rule, inflation pushes earning into the things that are renegotiated often. That is most of the companies prices (they are renegotiated every time you go in a store), and almost none of the workers salaries.
Yes, even during stagflation. Inflation means the price of some things rise really fast, and profits grow together, while other things rise very slowly, profits go negative and the companies stop being measured on that indicator.
Besides, as a rule, inflation pushes earning into the things that are renegotiated often. That is most of the companies prices (they are renegotiated every time you go in a store), and almost none of the workers salaries.