As earnings season kicks into high gear, there is one major question that could determine where stocks and inflation will head from here: Will companies continue to raise prices or cut costs in an attempt to maintain the record profit margins of 2021?
The more companies chase those record profit margins by increasing prices, the higher inflation could go. Inflation continued to increase in June, with the consumer price index once again hitting its highest increase in more than 40 years. Pepsi executives sounded like they were going to be more careful about price increases in the future, however, because of concerns about retailers and lower-income consumers.
carefully and we’re making decisions on entry point in the categories and how do we continue to have that particular consumer engage in our categories,” he said. Net profit margins overall appear to be declining, especially in tech and many consumer-focused categories. FactSet Senior Earnings Analyst John Butters said Friday that expectations for the quarter have already fallen as actual results were blended in, with analyst’s expectations for a 12.7% net margin at the beginning of the quarter declining to 12.4% so far this quarter, even with the bulk of reports still ahead.
This manner of price gouging is a major cause of our current inflation dilemma .
Yes
The answer is Yes. Not a single company is going to say No.
You are asking a question? Jeez you should go back to school to learn about (capitalist) economics. Or read Milton Friedman. People are just meat to be ground up in the giant machine that is driven by profit. Once you understand that your question isn't a question but a hard fact
Yes.
Yes, until inflation comes down.
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