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Inflation Risks Getting Sticky as Big Firms Flex Pricing Power

Jan. 14, 2022, 4:23 PM

Economists have largely dismissed the Biden administration’s efforts to blame the inflation surge in part on big companies padding profits, but some warn that these firms could still keep prices higher for longer.

Consumer prices rose 7% in 2021, the fastest calendar-year increase in 39 years, according to government figures released this week. Analysts generally agree on the cause: massive fiscal and monetary stimulus that swelled demand, coupled with supply disruptions and tectonic labor-market shifts triggered by the pandemic -- rather than pricing decisions by big business.

They also concur that the disruptions will ease over the course of the ...

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