Why Is Inflation So Sticky? It Could Be Corporate Profits

Businesses are using the opportunity to boost their profits, fueling stubborn inflation rates. Despite interest-rate rises, inflation remains uncomfortably high in the US and other parts of the world. Nestlé raised prices by 9.8% but still boosted sales by 5.6% in Q1. Consumers have become more acce

May 2, 2023 . 3:50 PM

1 min read

Businesses are using the opportunity to boost their profit margins, contributing to stubborn inflation rates.
Despite interest-rate rises, inflation remains uncomfortably high in the US and other parts of the world.
Food and health company Nestlé boosted sales by 5.6% in Q1 despite raising prices by 9.8%.
Consumers have been unusually willing to accept higher prices, and businesses are confident they won't suffer any brand damage.
Businesses may be reassessing their pricing strategies due to rising public scrutiny.