I’ve seen some outrageous pot-calling-kettle-black on these pages, but Binoy accusing anyone of “pontificating” takes the biscuit.

The OECD report does not corroborate the Australia Institute’s. The Australia Institute’s analysis is wrong, but the OECD’s is right. The difference lies in the measure used to gauge inflation. The massive growth in profits in Australia in recent years is almost entirely confined to the mining sector, which has benefitted from record-high prices in sectors such as energy and iron ore. Because these prices are charged mainly to overseas corporations not domestic consumers, they have little or no effect on Australian consumer prices, which is the most common measure of “inflation”, and the one that matters to the RBA and Australians generally. The Australia Institute is wrong to claim this inflation measure has been boosted by profits.

The OECD’s analysis uses a much broader price measure – the Gross Domestic Product deflator – which measures the prices of all goods and services produced in the economy including not just consumer goods but also capital goods, government spending and – most importantly – exports. This has indeed been boosted by record prices for mining exports that are reflected in record profits. As the OECD report explains:

“ … for oil and gas exporters, the prices of goods produced domestically and then exported rose rapidly, pushing GDP inflation above headline consumer price inflation.”

https://www.oecd-ilibrary.org/sites/ce188438-en/1/3/1/index.html?itemId=/content/publication/ce188438-en&_csp_=f8e326092da6dbbbef8fbfa1b8ad3d52&itemIGO=oecd&itemContentType=book

This effect is even more marked for Australia as its other mineral exports also attracted high prices.

The OECD analysis covers the period from 2019 to 2022. For the Stats nerds, here is the growth in some key measures between the March quarters of 2019 and December 2022:

Implicit price deflators:
11.4% Private consumption
53.5% Exports
25.6% Imports
18.1% GDP

Other price measures:
14.6% Consumer Price Index
9.3% Wage Price Index

Gross operating surplus:
103.8% Mining
18.9% Other
35.0% Total

Another good article from Binoy Kampmark, hitting the nail on the head with inflation being fuelled by a greedy corporate profit push. Government needs to intervene in the so called "free market" economy and rein in excessive corporate profits. The bankers and billy goats on the reserve bank board need to be shown the door forthwith, bring in economic controls that fix, prices, profits and incomes.

If you earned forty thousand British pounds a year since the birth of Christ, you would not have made as much money as Shell did last year.
Alan B.

.. inflation being fuelled by a greedy corporate profit push.
Paul1405,
How much profit do you think these corporates would make if the just as greedy consumers didn't waste their funds on things they don't need ?
Or bureaucrats paying each other huge salaries which causes the imbalance in the economy !