Is inflation finally biting into corporate profits?

By STAN CHOE
AP Business Writer

NEW YORK (AP) — Since inflation began bursting higher last year, big U.S. companies found a simple way to keep making record profits: Pass all those price increases along to their customers. But the formula may be showing signs of reaching its limit, which adds drama to this upcoming earnings reporting season. CEOs are lining up to tell investors how much their businesses earned in the first three months of the year, and they’re widely expected to say that earnings growth for the S&P 500 will be the slowest since the end of 2020. Earnings reporting season starts in earnest next week.