{"id":242878,"date":"2024-07-13T00:14:45","date_gmt":"2024-07-13T00:14:45","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/07\/13\/inflation-greedflation-economy-wide-vs-corporate-sector\/"},"modified":"2025-06-25T17:14:49","modified_gmt":"2025-06-25T17:14:49","slug":"inflation-greedflation-economy-wide-vs-corporate-sector","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/07\/13\/inflation-greedflation-economy-wide-vs-corporate-sector\/","title":{"rendered":"Inflation, Greedflation, Economy-wide vs. Corporate Sector"},"content":{"rendered":"

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In a recent SF Fed Economic Letter, Sylvain Leduc, Huiyu Li, and Zheng Liu\u00a0 answered the question: \u201cAre Markups Driving the Ups and Downs of Inflation?<\/a>\u201d If one defines inflation as a broad, economy-wide increase in prices, the answer is mostly \u201cno\u201d.<\/p>\n

From the Letter\u2019s conclusion:<\/p>\n

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Using industry-level data, we show that markups did rise substantially in a few important sectors, such as motor vehicles and petroleum products. However, aggregate markups\u2014the more relevant measure for overall inflation\u2014have stayed essentially flat since the start of the recovery. As such, rising markups have not been a main driver of the recent surge and subsequent decline in inflation during the current recovery.<\/p>\n<\/blockquote>\n

Two graphs are essential to seeing the difference between sector\/industry specific prices and the general:<\/p>\n

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Note that a decomposition used in this post<\/a> refers to the nonfarm corporate<\/em> sector, and normalizes to nearly a year earlier than in Leduc-Li-Liu<\/a>.<\/p>\n<\/p><\/div>\n

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