{"id":249878,"date":"2023-06-28T20:28:58","date_gmt":"2023-06-28T14:58:58","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=249878"},"modified":"2023-06-28T20:28:58","modified_gmt":"2023-06-28T14:58:58","slug":"explainspeaking-what-is-greedflation-does-india-also-have-it","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/explainspeaking-what-is-greedflation-does-india-also-have-it\/","title":{"rendered":"ExplainSpeaking: What is Greedflation? Does India also have it?"},"content":{"rendered":"\n

Source: <\/b>The post is based on the article<\/span> \u201cExplainSpeaking: What is Greedflation? Does India also have it?\u201d <\/b>published in<\/span> Indian Express on 27th June 2023<\/b><\/p>\n

What is the News?<\/b><\/h2>\n

There is a growing consensus across the world that Greedflation is spiking inflation.<\/span><\/p>\n

What is Inflation?<\/b><\/p>\n

Click Here to read<\/b><\/a><\/p>\n

What is <\/b>Greedflation?<\/b><\/h2>\n

Greedflation simply refers to a situation where corporate greed fuels inflation.\u00a0<\/span><\/p>\n

Instead of the traditional wage-price spiral, it is the profit-price spiral that drives inflation.\u00a0<\/span><\/p>\n

This can result in a significant rise in the overall price level, leading to a decline in the purchasing power of the currency and contributing to inflation.<\/span><\/p>\n

In developed countries like Europe and the US, there is a growing consensus that greedflation is the main reason contributing to inflation.<\/span><\/p>\n

Is Greedflation happening in India?<\/b><\/h2>\n

The<\/span> 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.<\/span><\/p>\n

Higher profits then can come only from<\/b>: <\/span>1)<\/b> higher sales (with the same profit margins) <\/span>2) <\/b>higher profit margins (with the same level of sales) or <\/span>3) a <\/b>combination of higher sales and higher profit margins.<\/span><\/p>\n

What is contributing to higher profits of corporates in India?<\/b><\/h2>\n

According to CMIE, 60% of the growth in net profit can be attributed entirely to the increase in profit margin.\u00a0<\/span><\/p>\n

The increase in sales contributed an additional 36% and the rest was a bonus from a combination of the two.<\/span><\/p>\n

Do these higher profits point to the existence of greedflation in India?<\/b><\/h2>\n

Data shows the existence of a sharp spike in profits.So, prima facie there is a very good chance that corporate greed also played a key role in spiking the inflation rate in India.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cExplainSpeaking: What is Greedflation? Does India also have it?\u201d published in Indian Express on 27th June 2023 What is the News? There is a growing consensus across the world that Greedflation is spiking inflation. What is Inflation? Click Here to read What is Greedflation? Greedflation simply refers… Continue reading ExplainSpeaking: What is Greedflation? Does India also have it?<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,9],"tags":[10500],"class_list":["post-249878","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-public","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/249878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=249878"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/249878\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=249878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=249878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=249878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}