How the rich got richer: welcome to the age of ‘greedflation’

Audio Long Reads, from the New Statesman

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In a bid to curb inflation, the Bank of England has raised interest rates 12 consecutive times – but the cost of goods continues to rise. The poorer have been hit hardest, as the price of household staples such as bread and milk rockets. Meanwhile some of the world’s biggest corporations have been “rebuilding their margins”: Starbucks increased its operating margin to 19.1 per cent last quarter (with takeaway coffee up 11 per cent); McDonalds, Tesco and other supermarket chains are also making higher profits on higher prices

What is driving today’s current cycle of greedflation? Usually ,when a company’s costs rise, its profit margins fall. In this week’s long read, the New Statesman’s business editor Will Dunn examines the economic forces at play, explores proposed solutions, and explains how ‘greedflation’ worsens inequality.

Written and read by Will Dunn.

This article originally appeared in the 2-8 June edition of the New Statesman. You can read the text version here.

If you enjoyed this, you might also enjoy listening to The great housing con by Will Dunn.

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