Jacobin | CTF
Firms had the ability to not just match the input cost increase, but tack on a few extra percentage points and so increase their margins during the pandemic. It’s not a simple story; it’s a combination of supply chain pressures and firms exploiting the situation to increase prices. They took the opportunity provided by rising prices and consumer expectations, believing consumers might not notice the difference between a 5 percent increase and a 7 percent increase.