In other words, they found that very many companies undertaking a wide range of activities were subject to significant price pressure pressure as a result of increasing raw material costs and higher energy prices which resulted in a decline in their profit margins. Those companies have to be those most exposed to competitive marketplaces.
In contrast, those companies with significant market power in areas where vertically integrated supply chains are commonplace or there is significant oligopolistic power, who just happened to be in the energy and retail (for which read food supply chain) markets, were able to exploit those market positions to increase their profitability quite considerably.
Has the cretin never heard of “commodity”. Even, commodity producers, who have a largely undifferentiated product and must therefore simply take the market price for their production. That is, they’ve not got market power? Like, umm, energy companies? Ever noticed how the oil price jumps up and down globally, all at the same time? Quite, it’s a commodity.
It’s not greedflation that increases profits in a commodity firm. It’s the price elasticity of both supply and demand.For oil and gas really rather inelastic in the short to medium term.
Jeez, this is real basics of priceing theory here and yet he’s inventing “greedflation” to explain it?