I learned a new word for a concept that had occurred to me, but I did not know had a formal label. The word is “greedflation” and it describes circumstances under which companies raise prices beyond what would be necessary to cover the cost of production and provide a reasonable profit margin. With the present concern, mostly fanned by political rhetoric, over inflation, it was puzzling to me why corporate profits in some cases were at record levels. This is greedflation.
There is obviously actual inflation, but the conditions for inflation also provide the opportunity for greedflation. Most people do not recognize greedflation when they are aware legitimate inflation is afoot. Greedflation is also more likely in industries with less competition allowing one or a small number of participants in that sector of the economy not to be undercut by competitors.
The first story covered in this On the Media podcast describes greedflation.