Was half of recent inflation caused by corporate greed?
Economists say corporate price markups are not a major cause of inflation.
The greed claim was made Sept. 27, 2024, by Democrat Kristin Lyerly. She is challenging Republican Tony Wied for an open Green Bay, Wisconsin-area U.S. House seat.
Lyerly’s campaign cited a report by the progressive think tank Groundwork Collaborative. It accused corporations of “gouging consumers,” claiming profits drove 53% of inflation in mid-2023.
The libertarian Cato Institute criticized the report's methodology. Economists disagree with its conclusion.
The Federal Reserve Bank of San Francisco said that since the COVID-19 pandemic, price markups have risen substantially in areas such as motor vehicles and petroleum, but overall, markups remained flat and have not been a main inflation driver.
Economists told PolitiFact rising costs for goods, labor and real estate are the main inflation drivers. Trillions in COVID stimulus, near-zero interest rates and the Russia-Ukraine war were also factors.