by Wolf Richter
Wolf Street
More evidence that underlying inflation dynamics are thriving.
How corporate profits spiked during the inflation-shock of 2021 and 2022 was amazing to watch: The pricing power companies suddenly had to hike prices and pump up profits because their customers were suddenly paying whatever, thereby propagating inflation across the economy. Then pricing power started fading, a mini lull ensued, and inflation backed off a lot. But now corporate profits have taken off again, and this renewed pricing power could be more bad news on the inflation front.