#Profits are driving #inflation. When will politicians and the Bank of England admit it?
by Richard Murphy

As the #IMF has just reported:

Rising #corporate profits account for almost half the increase in Europe's inflation over the past two years as companies increased prices by more than spiking costs of imported energy. Now that workers are pushing for pay rises to recoup lost purchasing power, companies may have to accept a smaller profit share if inflation is to remain on track to reach the European Central Bank's 2-percent target in 2025, as projected in our most recent World Economic Outlook.

"Wages have driven only a small part of inflation in #Europe. I also suspect that is true here [in the #UK] too."