Most economists say corporate price gouging is, at most, one of many causes of runaway inflation — and not the primary one.
on oil and gas company profits and to funnel the proceeds to financially struggling households.
Most of all, though, economists say resurgent spending by consumers and governments drove inflation up.from a year earlier, the biggest price spike since 1981.raised its benchmark short-term rate by three-quarters of a point by the Washington Post and George Mason University’s Schar School of Policy and Government blamed profit-seeking corporations, more than the share who pointed to Russia’s war against Ukraine or Biden or pandemic disruptions . And the verdict was bipartisan: 86% of Democrats and 52% of Republicans blamed corporations for inflated gas prices.
Policymakers and analysts have been repeatedly blindsided by the path the economy has taken since COVID struck in March 2020: They didn’t expect the swift recovery from the downturn, fueled by vast government spending and record-low rates engineered by the Fed and other central banks. Then they were slow to recognize the gathering threat of high inflation pressures, dismissing them at first as merely a temporary consequence of supply disruptions.
Likewise, NYU’s Conlon cites examples where prices have soared in competitive markets. Used cars, for example, are sold in lots across the country and by numerous individuals. Yet average used-car prices have skyrocketed 16% over the past year. Similarly, the average price of major appliances, another market with plenty of competitors, jumped nearly 10% last month from a year earlier.
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