Feb 16 • 15M

Fletcher’s very profitable inflation

Fletcher Building reports 45% rise in profit from building products after hiking prices faster than costs; sees "pricing disciplines to more than offset cost inflation" in forecasting cash bonanza

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Bernard Hickey and friends explore the political economy together.
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TLDR & TLDL: Politicians and voters are blaming surging global commodity prices, higher shipping costs, beefier Government spending and money-printing central banks for an explosion of inflation since Covid. But the fingers of blame here have yet to turn to monopolies and duopolies using their market power to lift prices faster than costs to grow profits and dividends.

That may be about to change with fresh signs our building materials and supermarket duopolies are pulling their pricing levers to increase profit margins. Paid subscribers can see more on that below the paywall fold.

Buyers report shortages in plasterboard, insulation, timber framing and other materials are grinding construction sites to a halt all over the country, with materials costs rising 20% in the last year. Photo: Lynn Grieveson/TheKaka

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