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).