studied Philosophy, Politics and Economics at the University of Warwick, United Kingdom. She writes for Philonomist.
Picture © Cyril Druesne
IN BRIEF
Greedflation refers to the strategy by which manufacturers take advantage of inflation to increase their margins.
WHERE DID IT COME FROM?
Inflation has made a comeback, reaching levels unheard of in forty years. With the war in Ukraine in February 2022, consumers were hit hard. But in the last year, the prices of raw materials have actually been falling. The oil barrel fell by 23%, the cost of international freight transport by 85%, while the price of wheat fell below pre-war levels in Ukraine. And yet, in 2023, the bill remains just as high, which suggests that some are discreetly taking advantage of the situation.
EXAMPLE?
What do greedflation practitioners have in common? They all benefit from a “pricing power” or an ability to increase prices, without any ensuing fall in demand. This is the case for luxury brands – at the end of January 2023, LVMH’s profits rose to 14 billion euros – but also for energy and f…
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