How corporate profits are making inflation worse
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Is Excessive Profits Driving Up Inflation?
The RBA has had very little to say about the role of excessive profits. And there's mounting evidence that this is what is driving inflation, or at least a large part of it. Shareholders tend to be high-income folks, while the price impact of interest rate rises fall most heavily on low-income folks. To bring it back to the Reserve Bank, continually raising the specter of excessive wages driving up inflation, well, there's no evidence for that.
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