While the price of goods and services has risen sharply, big business profits are not to blame for inflation in this country, a new report suggests. In Australia, a think tank found profits were a big driver of recent inflation. Sense Partners economist Shamubeel Eaqub said there was no evidence of widespread increases in profit margins driving up inflation in New Zealand. He said there had been periods where profit margins had grown substantially, especially after the mid-1980s economic reforms through to around 2000. "This report uses data from StatsNZ to show that increased profits are not driving inflation and that profits are actually leaner than they were pre-Covid.

Source: Stuff June 14, 2023 01:00 UTC