Profits explain much of the rise in prices in recent years: Share of price growth explained by growth in profits over the COVID-19 economic recovery

Profit contribution
1979–2019 11.4%
2020q2–21q4 53.1%
2020q2–22q1 40.9%
2020q2–22q2 40.8%
2020q2–22q3 37.9%

Note: The data show price growth in the non-financial corporate sector, which accounts for more than half of all private-sector output, and which likely sets pricing patterns for large swathes of the non-corporate sector as well.  

Source: Author’s analysis of data from Table 1.15 from the National Income and Product Accounts (NIPA) data compiled by the Bureau of Economic Analysis (BEA).

View the underlying data on