Expert explains how 'greedflation' is making companies more profitable

The pandemic disrupted supply chains across the nation, leading to high demand for consumer goods. Inflation also puts pressure on consumers, amounting to high prices at grocery stores, gas stations and other retailers. But now, years since the height of the pandemic, profits remain high even though supply chains appear to have returned to normal.

A federal report suggests grocery stores are making huge profits off what’s being called “greedflation,” the economic idea that businesses kept prices high on consumer goods well after pandemic-era demands cooled off.

On Wednesday’s edition of “Closer Look,” Dean Baker, a senior economist at the Center for Economic and Policy Research (CEPR), talked with show host Rose Scott about greedflation, the Biden Administration’s response to greedflation and how it impacts consumers and the economy long-term.