So what does it mean? Greedflation is the concept that companies have, in the wake of inflation, increased their costs not only in line with supply-side inflation but, above it, therein making themselves more profits by taking advantage of the current inflation in products such as food and energy. Companies such as Centrica, the company that owns British gas, has posted record profits of £3.3bn for 2022, more than tripling its results in 2021. It raises the question, if the prices of energy have gone up for the supplier, how are they able to make these new and extreme profits? Are companies taking advantage of inflation? The answer isn’t that simple, and most of the backlash from this comes in relation to the fact that most countries are currently struggling. Countries like the UK, which has found itself particularly susceptible to these issues which, have been enhanced by the implementation of Brexit, as well as the Covid-19 pandemic and the war in Ukraine. When your average person is struggling with a cost-ofliving crisis, it’s hard to see the cost of food and energy rise when you can see the companies charging these prices making record profits. Greedflation is the concept that companies have, in the wake of inflation, increased their costs not only in line with supplyside inflation but, above it. Finance Monthly. Economy 55
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