Greedflation: What is 'Greedflation', Britain's markets are in the grip of it, companies are making profits but people are worried.

Greedflation: What is 'Greedflation', Britain's markets are in the grip of it, companies are making profits but people are worried.

Greedflation Effect: Britain is in the grip of 'greedflation' these days. Due to this, the people who are facing the brunt of inflation are worried. Britain's Competition and Markets Authority (CMA) has issued a report and expressed concern over this rapidly growing trend. Let us understand what this gridflation is all about. 

What is Gridflation

CMA has recently released a report. According to this, companies in Britain are rapidly promoting gridflation. Due to this, items of daily consumption are becoming expensive and people's pockets are getting hit hard. According to CMA, big grocery companies operating in the country are unnecessarily increasing the prices of various products. Whereas their cost has not increased that much. The authority has named it gridflation. That means earning extra profit by showing unnecessarily increased costs.

Increases prices by citing the effect of inflation 

Greedflation has been created by combining greed (greed) and inflation (inflation). When companies start increasing prices artificially without any need, it is called gridflation. Companies call it the effect of inflation and make extra profits in its name. But, this wrong way of earning profits has a very bad effect on the consumers. They have to pay extra money in the name of increase in inflation even though inflation has not increased that much. 

Two-thirds of brands increased prices randomly 

According to the report, almost two-thirds of the brands promoted gridflation in the last two years. These include companies making children's products, baked beans, mayonnaise and pet food products. These companies increased the prices without any reason and increased the inflation rate of food items.   

Prices also increased due to electricity, gas and fertilizer 

However, the report has revealed that the reason for the increase in prices in the food and grocery segment is also the rising rates of electricity, gas and fertilizer. This has affected the companies. But, in proportion to this they have increased the rates significantly. CMA said that this is the effect of gridflation. This has ruined people's budget. The authority investigated it in 10 categories and found that the prices of baby milk have increased by 25 percent in the last two years. This is the reason why inflation rate in Britain has historically increased. In October, 2023 it was at 10.1 percent. CMA said that the British government will soon have to make strict rules regarding this gridflation otherwise a crisis may occur.

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