Effect of Greed: Britain is in the grip of ‘gradflation’ these days. Due to which people are worried about inflation. UK’s Competition and Markets Authority (CMA) issued a report expressing concern over this rapidly growing trend. Let’s understand what this grid flexion is.
What is gridflation?
The CMA has recently released a report. Accordingly, companies in the UK are increasingly promoting grid fusion. Due to which the daily necessities are becoming expensive and people’s pockets have suffered a severe blow. According to the CMA, major grocery companies operating in the country are increasing the prices of various products unnecessarily. While their price did not increase so much. The authority calls it gridflation. This means making extra profit by showing unnecessarily inflated costs.
Increases prices by explaining the effect of inflation.
Greedflation is created by combining greed and inflation. When companies start artificially raising prices unnecessarily, it is called grid inflation. Companies call it inflationary effect and make extra profit in its name. But this wrong way of making profit 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 randomly increased prices.
According to the report, nearly two-thirds of brands promoted GridFlash in the past two years. These include companies that make baby products, baked beans, mayonnaise and pet food products. These companies increased the prices without any reason and increased the rate of inflation of food items.
Electricity, gas and fertilizer prices also increased.
However, the report revealed that the increase in prices in the food and grocery sector was also due to rising prices of electricity, gas and fertilizers. This has affected companies. But, proportionately they have increased the rates significantly. This is the effect of grid inflation, CMA said. This has ruined the public budget. The authority investigated it in 10 categories and found that the price of baby milk has increased by 25% in the last two years. This is the reason why the rate of inflation in the UK has increased historically. In October 2023, it was 10.1 percent. The CMA said that the British government will soon have to make stricter rules regarding this grid inflation, otherwise a crisis could arise.
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