European stock market-related companies that have already published their figures for the first quarter (January, February, March) of this year have increased their earnings per share by an average of 4 percent. Analysts had estimated a contraction of 1 percent.
On the basis of these figures you cannot conclude that there is a grab-flation everywhere. For example, companies may have cut costs and therefore made more profit. If the results mention “efficient pricing strategy”, on the other hand, you can make the link.
Now what should we make of this grab inflation? “Companies, especially large companies, are taking advantage of the situation to boost their profits. In our market system, you cannot avoid companies trying to maximize their profits. They are now in a situation where they can do that,” says Professor Paul De Grauwe of the London School of Economics in the economic magazine “De markt” on VRT 1.
2023-05-13 08:24:00
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