Why aren’t corporate profits affected by inflation?

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Why aren’t corporate profits affected by inflation?

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Anonymous 0 Comments

They absolutely are. It all depends on the ability of the company to pass on higher costs to consumers, or to reject higher prices from their suppliers.

For example, if Apple raised iPhone prices by 10%, most of their customers probably wouldn’t care so much. But if a restaurant tried to do that, they’d probably lose customers to the next restaurant.

Some companies benefit a lot because they produce the things which are inflating, like oil or metal producers.

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