Inflationary pressures, wages and profits

Description: The recent period of high inflation has prompted a number of studies examining its causes and consequences. Of particular interest if whether “greedflation”, the situation where businesses are taking the opportunity in a high inflationary environment to increase their prices above their underlying costs of production in order to garner higher profits. This article sheds light on this by investigating how labour costs (primarily wages and salaries), and non-labour costs (primarily returns to capital) are evolving relative to inflation.

Issue Number: 2023006

DOI: https://doi.org/10.25318/36280001202300600005-eng