The ECB and IMF confirm: "Inflation is mainly driven by companies, not wages." [View all]

Another confirmation of how inflation in the eurozone has depended so far much more from corporate profits than from workers’ wages.

On the other hand, firms have raised prices far more than costs - thereby increasing earnings.

Latest data taken from International Monetary Fund (IMF) shows how from the beginning of 2022 to today, business profits have had an impact 45% of total price increases. Wages accounted for a more modest 25%, and the cost of imports another 40%.

The amount exceeds 100 because the decreasing tax component acted against inflation. The IMF data follow what the European Central Bank (ECB) has been saying for several months now: that at the moment there is no price-salary spiral, and how price increases are largely driven by companies’ decision to raise their product prices rather than by increasing costs.

At: https://thenationupdate.com/economy/454679.html

Greedflation: Ballooning corporate profits (red) have accounted for nearly half of Europe's inflation since 2021.