Even as inflation bites, corporate profits remain flush
By STAN CHOE
AP Business Writer
NEW YORK (AP) — What’s immune to high inflation? So far, the profits at big U.S. companies. Companies have successfully raised prices for their products, from cups of coffee to cans of paint, because buyers are lining up regardless. By passing along their cost increases, companies been able to report record profits. Economists aren’t surprised by the resilient profit margins because customers have increased their buying faster than sellers can refill shelves. What’s uncertain is how much longer the trend may last, before customers sharply cut back on their purchases due to higher prices. And analysts expect margins to recede as the economy gets further from the pandemic’s distortions.
