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Concerns that a big driver of price rises may be firms using inflation as excuse to increase profit margins
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Scooped by Graham Watson |
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The ECB has announced that it will be look out for instances of price gouging and the possibility of EU firms using the current inflationary environment to increase their profit margins, exploiting consumers. Apparently this stems from some research shown to the ECB council suggesting that profit margins have increased by 25% at a time when ordinarily we'd expect them to be shrinking.
Were they to do so, it would slow the rate at which inflation falls, although quite what the ECB can do about this is another matter.