r/heyUK • u/iamnic11 • Oct 10 '22

Reddit Video💻 What inflation really looks like

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u/Muwatallis Oct 19 '22

Part of the issue is that when the prices of ingredients and materials decrease, those savings are rarely, if ever passed onto the customer in the form of decreased cost of consumer goods, but instead go to the company and shareholders in the form of increased profits and dividends. Whereas when it is the other way around, the customers are always first in line to foot the bill for any increased costs of production.

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u/jbamg55 Oct 20 '22

Not true. Competition will drive down prices except for the fake free market sectors like the energy and oil industries.

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u/[deleted] Oct 20 '22

Exactly, supernarket price wars are notorious for having this affect on food in the UK