Canada’s richest companies riding the inflation gravy train
Canada’s richest companies riding the inflation gravy train
By David Macdonald
Inflation in Canada is the highest it’s been since the 1990s, but the reason behind the rising cost of living is different this time and rich corporations are part of the story.
Canada hit a new all-time high in corporate profits between October and December last year – $139 billion in pre-tax profits, to be exact, according to Statistics Canada.
And the party’s still going this year: between January and March 2022, corporations made $138 billion in pre-tax profits.
Corporations’ gross profit margins have also hit a new high, reaching a record 10.9 per cent in the first quarter of this year. This means that corporations are avoiding being squeezed by high input costs (like gasoline) by passing all those costs, and then some, on to consumers. They’re turning the difference into profit for themselves.
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