CITY AM – Greedflation row heats up
CITYAM SAYS “Greedflation” is not to blame for prices surging in the UK and instead businesses are pushing up prices in response to soaring costs, a former Bank of England rate-setter claimed today.
Michael Saunders, an ex-member of the monetary policy committee – the nine strong group that sets interest rates in Britain – and now senior economic adviser at consultancy Oxford Economics, has said isolated incidents of rising profits “do not reflect the overall picture” of the UK economy.
Speculation that companies have been exploiting the inflation crisis by unfairly lifting prices to beef-up profits, a process known as “greedflation,” has gathered momentum in recent weeks.
Supermarkets have been criticised for not passing on the reduction in commodity and transport costs as quickly as they raised prices after those costs soared.
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