BloombergBloomberg

How 'excuseflation' is keeping prices - and corporate profits - high

By Tracy Alloway and Joe Weisenthal

09 Mar 2023 · 7 min read

Editor's Note

Bottlenecks and supply chain disruptions have given companies a reason to raise prices, leading to record profit margins. But is this strategy sustainable in the long term? Bloomberg reports.

"Whether it's rye flour, or bird flu that impacts eggs," said Ken Jarosch, the owner of Jarosch Bakery, "when it makes national news, just running a business, it's an opportunity to increase the prices without getting a whole bunch of complaining from the customers."

It's not the kind of thing you typically hear a business owner express publicly but Jarosch was simply stating late last year his philosophy about when it's safe for a business such as his - a midsize bakery in the Chicago suburbs - to raise prices for cookies, cakes and other carbs. He had the idea long before Covid upended supply chains, realizing he could quickly push through price increases when news hits of some big shock to the economy because there'll be less pushback from customers right then.

Sign in to informed

  • Curated articles from premium publishers, ad-free
  • Concise Daily Briefs with quick-read summaries
  • Read, listen, save for later, or enjoy offline
  • Enjoy personalized content