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Summary
Consumers and retailers both face challenges in times of economic inflation. Whereas the Covid pandemic has plunged us into unprecedented times, previous research suggests that when prices rise, consumers tend to expect inflation to be high and persistent. They also tend to overestimate sellers’ profits and underestimate the effect inflation has on the seller. Some companies are equipped to weather such price increases. However, the long-term impact of the perception of “greedflation” is yet to be quantified.
