It speculates about reasons why companies have increased prices faster than their input costs have risen:
"The resulting resilience in demand has given companies the confidence to raise prices faster than costs.
In addition, the power of storytelling has conditioned consumers to accept price rises. Imagine a story about a farmer who takes wheat to the windmill, where it is ground into flour, and then baked into bread. In that fantasy world, a rise in the cost of wheat of say 22 per cent might be used to justify a 15 per cent rise in the price of bread."
The argument is neither complete nor convincing. Unless there's some bread cartel/oligopoly, a bread seller can't just increase prices and use a story to convince people it's unavoidable.
It speculates about reasons why companies have increased prices faster than their input costs have risen:
"The resulting resilience in demand has given companies the confidence to raise prices faster than costs.
In addition, the power of storytelling has conditioned consumers to accept price rises. Imagine a story about a farmer who takes wheat to the windmill, where it is ground into flour, and then baked into bread. In that fantasy world, a rise in the cost of wheat of say 22 per cent might be used to justify a 15 per cent rise in the price of bread."
The argument is neither complete nor convincing. Unless there's some bread cartel/oligopoly, a bread seller can't just increase prices and use a story to convince people it's unavoidable.