, Columnist
Low Inflation Threatens Corporate Profits, Not Workers
Workers can demand higher pay, but companies can't raise prices.
With low unemployment, workers gain bargaining power for wages.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
The latest inflation numbers are worrying the wrong people for the wrong reasons.
March's weak report on the consumer price index showed inflation to be low, throwing out investors' assumptions about inevitable rate increases from the Federal Reserve and raising fears that economic growth would remain in the doldrums. But that anxiety is misplaced. Households' finances now look strong. Low inflation is primarily a concern for corporations, which are seemingly unable to raise prices and hence protect profits.