The Importance of Premiumization

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Companies are prodding consumers towards fancier, often pricier versions of their products. As those products grow more exclusive and expensive, we thought of gentrification as that metaphor for what's happening to the economy. What corporate executives will call that is premiumization, which is a mouthful. There's probably two big drivers I think that have driven this premiumization over the last two decades.

The traditional explanation of inflation is simple: too much money chasing too few goods. But some experts are now wondering if companies’ aggressive pursuit of profit is driving up inflation as well.

This episode was produced by Miles Bryan, edited by Matt Collette, fact-checked by Laura Bullard, engineered by Paul Robert Mounsey, and hosted by Noel King.

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