Readers about ‘grabbing inflation’: ‘Companies make record profits and that is not possible’ | Rack

Every day you can read what people think of the news of the day. Today: this is what you say on our response platform NUjij about ‘graaiflation’. Critics think that companies are taking advantage of the situation and raising prices even more for their own gain: the so-called grab inflation. Experts doubt this.

‘Not surprising that people think that people are grabbing’

NUjij’er JT: “Almost every reason is used to increase the price. Corona, war Ukraine, energy crisis, increased labor costs and / or inflation itself. But when that subsequently stabilizes, for example decreased gas prices, prices are not reduced. Some are even further I don’t think it’s surprising that people think that people are grabbing, after all, it looks like it.”

“Don’t tell me that there is no grab inflation here”

NUjij’er Dear_steers_people_stand_ashore: “Fortunately, I have no idea how a product arrives at its price, but I can see whether there is a price difference in one or the other.
For example, I was at Intra Tuin, where they pay for a bag of potting soil of 40 liters. €9.99, 8 kilometers further at Edeka (Germany) the same bag for €2.99. Later I saw an offer 20 ltr at the Jumbo. for €3.00. Don’t tell me there’s no grab inflation here.
The fact that I live near the border does have its advantages and I know that not all of the Netherlands can compare a price across the border and everything is really no hosanna there, but these kinds of price differences bring tears to my eyes.”

‘The increased costs have been generously passed on’

Now you’re RembrandtvanRijn: “It’s very simple: profit is what remains after costs have been deducted. High demand, scarcity and inflation make raw materials more expensive, and those costs become breakthrough. Retail prices are therefore higher as a result. Sounds plausible.

However, as long as one company after another turns out to be making record profits, something else is going on. Apparently they have more money left after costs have been deducted. The conclusion can then only be that the increased costs have been passed on rather generously, in order to benefit themselves.

In case costs decrease, for example because high energy prices have returned to a normal level, prices could be reduced. However, this is almost always not the case, which means that companies’ profits rise even further. For example, I can still pay more structurally and generously at the local branch of a well-known supermarket chain.”

‘Companies are making record profits. That is not possible.’

NUjij’er Henk_f4392fd9: “If we look at the annual figures of large groups such as Shell, Unilever, Ahold, energy companies (notably the companies from which inflation comes), we see mega profits. Mind you: net profits!
So yes, the costs have increased, but at the same time they have increased prices to such an extent that record profits are being made.
Now you can talk long or short about costs, but this is just grabbing. The numbers don’t lie.

In the financial crisis of 2008, all companies had less profit. One even less than the other. Now certain companies are making record profits. That is not possible.
This cannot be interpreted as “grabbing”.

We are waiting for competition that does charge reasonable prices, and thus pushes the market down again.”

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