Some corporations are “using the cover of inflation” to hike profits and score record profits, Common Dreams reports.
An analysis released by the House Subcommittee on Economic and Consumer Policy said that some corporations are blaming inflation to “raise prices excessively, resulting in record profits and profit margins" at the expense of consumers.”
The report found that three of the five largest shipping companies saw profits increase by over 29,000%.
The two largest car rental companies saw profits rise 597%.
Four of the largest meat processors increased profits by 134%.
Four of the 10 largest oil and gas companies saw profits rise by 62%.
"Over the same period, profit margins increased by 201% among the companies analyzed in the shipping industry, by 262% among the companies analyzed in the rental car industry, and by 53% among the companies analyzed in the meat processing industry," the report said.
How corporations fuel inflation:
The report noted that "recent economic studies make clear that record corporate markups, profits, and profit margins contributed to—and continue to contribute to—ongoing Inflation."
“Studies by the Economic Policy Institute and Roosevelt Institute demonstrate that profits contributed more to price growth in the United States from mid-2020 through the end of 2021 than at any other point from 1979 to the present—and continue to contribute markedly today,” the report said. “This is especially true in highly concentrated industries."
Rep. Raja Krishnamoorthi, who chairs the committee, called on Congress to pass legislation aimed at “excessive price hikes.”
“Today's analysis reaffirms what an overwhelming 80% majority of Americans already recognize according to a recent poll: Under the guise of inflation, certain corporations excessively hiked prices far beyond what their costs necessitated, further driving inflation,” he said.
"As American corporations report their highest profit margins the United States has seen in over 70 years, executives of leading companies are admitting on earnings calls that they're taking advantage of inflation," he added. "One executive argued that 'a little bit of inflation is always good in our business' while another admitted that his company's prices wouldn't fall with decreasing costs, stating, 'We don't reduce prices on the back end of these increases.'"