Profits to blame, not wages

Soaring company profits, not rising wages, are driving the cost of living crisis, according to research commissioned by general union Unite.

The claim comes as ONS figures released last month showed RPI inflation running at 13.5% and CPI inflation at 10.1%, with food prices rising by 19.2%, the highest rate for 45 years. Meanwhile, earnings rose by only 6.6%.

A Unite analysis of FTSE 350 companies rubbishes the government’s claims that wage rises cause inflation, showing that corporate profits have been rising dramatically while the value of wages has plummeted. Profit margins for the first half of 2022 were 89% higher than in the same period in 2019, and even higher than in 2021, when profits jumped 73%.

The report concludes that “profiteering is rife. Across a range of industries and markets, bosses and investors have been reaping gains from crisis – while the economy systematically fails the vast majority of us, both as workers and as consumers.”