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Greedflation Is Real

Stuff You Should Know

Accounting for Increasing Costs and Profit Margins

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Large corporations in the food industry justify price increases by pointing to factors like pandemic inflation. While it is reasonable for companies to adjust prices to maintain profitability, the issue arises when profit margins increase more than the rise in costs. This discrepancy is evident in cases where companies significantly boost their profits amidst cost rises, indicating a disproportionate gain beyond covering increased expenses.

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