Greedflation

Greedflation

What is it?
• Greedflation is a term that refers to companies increasing prices purely to drive up profit margins. It suggests that the price increases are not justified by a legitimate need, such as a rise in the cost of production, but rather by greed.
• Greedflation can occur when corporations take advantage of an inflationary period to excessively increase the prices of their products or services.
• One example of greedflation is the oil industry, which has been accused of price gouging in the face of the pandemic and the Russia-Ukraine war. Despite supply disruptions and rising demand, oil companies have reported record profits in 2022, indicating that they have marked up their prices far beyond their cost.