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Central bankers warn companies on fatter profit margins

Central banks warn companies against using high inflation to boost profits, shifting focus from wage price spirals. Unions call out profiteering epidemic.

  • Central banks warn against using high inflation as an excuse to boost profit margins.
  • US company profit margins hit highest level since WW2, Eurozone businesses also enjoy biggest expansion since 2008.
  • Policymakers shift focus from wage price spirals to businesses raising prices.
  • Unions call out corporations for profiteering epidemic, while central banks urge companies to refrain from perpetuating high inflation.
  • Weaker demand likely to reduce companies' price gouging opportunities, but economists warn market imperfections may still allow for margin-raising.
Central bankers warn companies on fatter profit margins
After focusing on the dangers of strong wage growth, rate-setters have switched to businesses raising prices