Torsten Rieke on the pricing power of companies as inflation drivers
When companies in some industries have a strong market position – up to oligopoly-like situations – this can promote inflation. Thorsten Rieke points this out in the Handelsblatt:
“If it turns out that the pricing power of companies is partly responsible for the fact that inflation remains so stubborn, then the price increase could hardly be slowed down by further interest rate increases. The demand would then not be for monetary, but for antitrust authorities with a stricter competition policy.”
– Torsten Rieke, International Correspondent for the Handelsblatt, in “Where are the central banks? – According to economists, the currency guardians underestimate the importance of corporate profits for the stubborn price increase”, Handelsblatt of March 22, 2023, page 11
