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US Inflation Starting to Stir as Trump Tariff Threat Looms

  • Multiple studies from 2022 to 2023 found that rising corporate profits significantly contributed to inflation in the US and UK after the Covid recession.
  • These studies showed that higher profit margins and markups explained over half of inflation increases, with a small number of firms driving most gains.
  • For example, US non-financial corporate profits rose from 13.9% to 16.2% of economic output post-pandemic, while the UK's top firms' profits increased by 30%.
  • Airlines announced plans in early 2025 to cut capacity by four percent amid rising prices, and coordinated pricing in sectors like eggs also fueled inflation pressures.
  • These findings suggest inflation partly stems from corporate pricing power, prompting renewed calls for antitrust enforcement despite questions about its effectiveness alone.
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The Daily Star broke the news in on Saturday, May 10, 2025.
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