Corporations are a lot more willing than usual to raise their prices lately, and it’s putting more of the burden of high inflation on consumers.

That may not come as much of a surprise to anyone who has browsed a grocery aisle, kicked the tires at a car dealership or filled up a gas tank of late, but even the Bank of Canada is starting to take notice of the trend, as the central bank continues its battle to wrestle inflation into submission.

Speaking to a parliamentary committee in Ottawa this week, the bank’s governor, Tiff Macklem, told lawmakers that the bank has noticed a troubling new trend coming out of the corporate sector.

For much of the past few decades, any time businesses have seen a jump in their input costs — the amount they pay for things like raw materials, energy and even workers — “they were pretty cautious about passing on [that cost into] the prices they charged for goods and services,” Macklem said.

Their reasoning was simple: they were afraid of losing customers.

  • agitatedpotato@lemmy.dbzer0.com
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    1 year ago

    Shockingly, when you don’t come down hard enough on price gougers during a global pandemic, the rest of pf buisnesses get the idea you’re unwiling to punish anyone for price gouging.

    • KᑌᔕᕼIᗩ@lemmy.ml
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      1 year ago

      The price gouging is causing inflation.

      They then have segments on the TV telling us it’s our fault for spending more money. Like how the fuck am I supposed to spend less money when all the essentials in life are skyrocketing in price!?

      • athos77@kbin.social
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        1 year ago

        It’s more that wages have simply never kept up with inflation, and now there’s so little room left for the individual, while end stage capitalistic corporations are happily gouging away at stones in search of more blood.

        • KᑌᔕᕼIᗩ@lemmy.ml
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          1 year ago

          Indeed, but the gap has definitely and noticeably accelerated between them in the last few years. It’s a problem caused by greed ultimately.

      • ghostdoggtv@lemmy.world
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        1 year ago

        The tacit answer goes to politics. Capital is trying to gaslight people into believing that life is not worth living anymore.

  • athos77@kbin.social
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    1 year ago

    for the 20 years leading up to 2022, corporate profits were responsible for about one-third of inflation. Last year, however, that ratio jumped to two-thirds, which means that despite legitimate increases in their cost of doing business, their take-home share of every consumer dollar effectively doubled.

    Record profits everywhere - except for employees and consumers.

    Advice for consumers for much of the past year has boiled down to either trying to cut back on expenses, or increasing income, but Stanford says it’s misleading to put the onus on consumers to solve inflation, since they’re the ones bearing the disproportionate burden of it.

    • LemmysMum@lemmy.world
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      1 year ago

      The sheep can’t hear you over the sound of munching grass. The cattle have no care for what their bells say.

      You show me how to eradicate wilful ignorance and deliberate belligerence and I’ll show you a functional society.

      You would think we didn’t have a massive communication channel attached to our hips ffs

      It might as well be a broken translator.

    • CulturedLout@lemmy.ca
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      1 year ago

      Wouldn’t picking off small players just make the problem worse? We’d have even less options than we do now.

  • LemmysMum@lemmy.world
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    1 year ago

    Every dollar of profit is a dollar exploited from the the supplier, the worker, and the customer.

  • VaultBoyNewVegas@lemmy.world
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    1 year ago

    Where I live there’s only one company responsible for public transport for the whole country/state/province and they have increased fares for busses by 7% and are now increasing train fares for most adults too (not the elderly though) just only young people and people below retirement age being affected and there’s no support for decreased fares for people in poverty or jobless or disabled. Prices had been frozen for about a year or two because of “cost of living” yet money is going less further this year because wages haven’t kept up and goods are still expensive so the least well off is going to be hit harder by the increase to public transport.

    • KᑌᔕᕼIᗩ@lemmy.ml
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      1 year ago

      The same where I live applies to electricity and water. The governments of the past sold them off to the public to raise revenue for election promises and ever since the prices of their services have skyrocketed.

      Electricity in particular is a complete scam as they set up a market of private resellers that provide the illusion of competition but they’re all around the same price as they all buy their electricity from the same single wholesaler.

      We even let companies extract our gas and then sell it back to us at international market rates. My country is dumb.

  • Pyr_Pressure@lemmy.ca
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    1 year ago

    One of the products we use at our business is going up about 25-30%

    We are locked in to contracts that last 3-5 years. We will be eating that cost for awhile now.

  • dislocate_expansion@reddthat.comB
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    1 year ago

    the definition of inflation is too much currency going after too few goods, all of this blaming the companies or the workers shows the hand of the writer not understanding basic capitalist economics. so the writer is most likely either ignorant or a shill