answersLogoWhite

0

How does inflation affect profit?

Updated: 8/22/2023
User Avatar

Wiki User

11y ago

Best Answer

Well the same way as it affects anyone else.

If the business don't raise the prizes on whatever product they sell alongside the inflation it will end up paying higher and higher prizes on materials and services from other companies. Meaning lower and lower revenue.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

11y ago

The higher the inflation, the lower the profit and vice versa, it's applicable for every Stock Market around the world

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How does inflation affect profit?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How will weather affect the inflation of giant balloons?

how will the weather affect the inflation of the ballooons


How will inflation affect hospitality industry in Nigeria?

how does inflation affect hospitality in nigeria industry


What has the author Jean-Jacques Friboulet written?

Jean-Jacques Friboulet has written: 'Profit, investissement et inflation' -- subject(s): Inflation (Finance), Investments, Profit


What has the author Joseph Harbinger written?

Joseph Harbinger has written: 'You can profit from inflation' -- subject(s): Effect of inflation on, Inflation (Finance), Investments


How do interest rates and inflation affect real estate in south Africa?

explain how do intrest rates and inflation affect the real estate


How will the weather affect the inflating of the balloons?

how will the weather affect the inflation of the ballooons


Was the ATM the answer to inflation?

No. The ATM does not in any way affect or answer inflation. It is just a machine through with customers can do banking transactions without visiting their bank. It does not cause or affect inflation. Only the country's central bank can control inflation by changing regulatory policies.


What happens when you adjust for inflation?

When adjusting something (such as costs, budgets, profit, etc etc) for inflation, one has to multiply the figure by the infaltion for the period you are examining. For instance, if we are looking at profits from 1950 in today's dollars, you want to mulitply the profit in 1950 by the inflation factor (which will be very high) to get the figure in "today's dollars".


Who benefit inflation?

Probably the people who exchange their currency to a different currency before an inflation, then exchange that foreign currency back, therefore making a profit.


How do chemicals affect the inflation of a balloon?

Inflation of a balloon is NOT a chemical reaction, so there are no chemicals involved in 'affecting' it.


During inflation what is the best method to value the stock?

during inflation the best method to use inventory valuation that produces that produces that least amount of profit is


How does increased stock prices affect the nation?

Inflation!