Inflation Keeps Rising for Giants’ Profits (Not Wages): The Analysis
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The Big Question
In anticipation of May 19, when Moody’s – which predicted our sharp fall into recession – will issue its opinion on the sustainability of the Italian debt, one wonders why Italian inflation (up to 8.3 per cent in April for consumer prices) shows such a high degree of resistance. And why in Italy it is more difficult to get off than elsewhere. Energy and raw materials cost less but producer prices, although down slightly by 1.5 per cent in March, are still little affected. All to the advantage of the legendary mark up which all the company heads boast – but not in communicating with customers. In short, the question is only one: is there an inflation from too many profits? Not only does the secretary of the CGIL, Maurizio Landini say it, but even Fabio Panetta, an Italian member of the European Central Bank and probable successor of Ignazio Visco in the Bank of Italy, affirms it – albeit in different tones. And he explained it very well, in a lecture at Trinity College in Dublin, by his Irish colleague, chief economist of the ECB, Philip Lane.
09 May 2023
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