We've all noted rapid and substantial increases in the pricing of goods we buy every day.
Looking at some of the price increments that seem well in excess of currency inflation over the past couple of years, I wonder how much of the higher prices we're paying is a result of actual wage/price inflation and how much of it represents improvements in margins at every level from production through retail sale?
The rationale given is always along the lines of "well...inflation" and to some extent that is certainly true, since everything does cost more in nominal dollars, from materials to transport to labor.
My question is how many levels of the supply chain are using this inflationary environment to raise prices beyond any inflationary impact with inflation used as an excuse to increase margins?
Looking at some of the price increments that seem well in excess of currency inflation over the past couple of years, I wonder how much of the higher prices we're paying is a result of actual wage/price inflation and how much of it represents improvements in margins at every level from production through retail sale?
The rationale given is always along the lines of "well...inflation" and to some extent that is certainly true, since everything does cost more in nominal dollars, from materials to transport to labor.
My question is how many levels of the supply chain are using this inflationary environment to raise prices beyond any inflationary impact with inflation used as an excuse to increase margins?