What is Greedflation? Does India also have it?

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Last Updated28/06/2023

There is a growing consensus across the world that corporate greed is spiking inflation.

It implies that companies exploited the inflation that people were experiencing by putting up their prices way beyond just covering their increased costs and then used that to maximise their profit margins.
That, in turn, further fuelled inflation.

In India, as per an analysis of corporate profits, profitability is at a record high.
The Indian corporate sector has generated superlative profits in the post pandemic period.
Profits during recent times have been nearly thrice the profits corporates earned earlier.
Higher profits then can come only from
- higher sales (with the same profits margins)
- higher profit margins (with the same level of sales)
- or a combination of higher sales and higher profit margins
Reasons for higher profits
- 60% of the growth in net profit can be attributed entirely to the increase in profit margin.
- The increase in sales contributed an additional 36% and the rest was a bonus from a combination of the two.