Why aren’t corporate profits affected by inflation?
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They are affected. Corporations will generally have their input costs rise for labor, raw materials, etc. They will also generally be able to raise their prices to consumers. How much their costs increase and how much they can increase their prices will determine the effect on profits. For some industries inflation is favorable — a residential landlord can cite rising prices and wages to justify a rent increase, but most landlords have a fixed building cost and will only have comparatively mild increases in repair costs. Others may suffer — labor heavy businesses like restaurants will have big increases in costs and may not be able to get consumers to pay a big hike in prices.
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