Multinationals in particular hiked prices far above rise in costs to deliver an outsize impact on cost of living crisis, report concludes
Multinationals in particular hiked prices far above rise in costs to deliver an outsize impact on cost of living crisis, report concludes
I work for a manufacturing company, and during the demand boom our customers wanted way more product than our facilities are physically capable of producing. I suppose sales could have complexified and ratcheted up our existing rationing process (have to have one at some level when it takes months to produce an order), but raising prices made demand go down so it matched our actual ability to make stuff.
Given the wild increase in demand beyond the infrastructure capabilities, the only alternative to inflation was rationing, and I do not have enthusiasm for ration lines.
Price hikes in a manufacturing context are simply rationing with extra profits, atleast until you build out greater capacity.