The contribution of firm profits to the recent rise in inflation

Panagiotis Bouras, Christian Bustamante, Xing Guo and Jacob Short

No 2023-12, Staff Analytical Notes from Bank of Canada

Abstract: We measure the contribution to inflation from the growth in markups of Canadian firms. The dynamics of inflation and markups suggest that changes in markups could account for less than one-tenth of inflation in 2021. Further, they suggest that peak inflation was driven primarily by changes in the costs of firms.

Keywords: Firm dynamics; Inflation and prices; Market structure and pricing (search for similar items in EconPapers)
JEL-codes: D22 D4 E31 L11 (search for similar items in EconPapers)
Date: 2023-08
New Economics Papers: this item is included in nep-bec, nep-com and nep-mon
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Citations: View citations in EconPapers (2)

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Journal Article: The contribution of firm profits to the recent rise in inflation (2023)
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