Greedflation not a passing storm

Inflation is, of course, not only a Greek problem or just an imported problem. It's also not like a storm that can't be dealt with and you just wait for it to pass. Nor, again, is it a neutral phenomenon: It redistributes wealth. As long as consumption holds up, producers and retailers raise prices and profits. Are we experiencing greedflation?

It happens in the best of places. Real earnings are rising, while real wages are falling in the United States, Paul Donovan, global chief economist at UBS Wealth Management, wrote in the Financial Times. And European Central Bank President Christine Lagarde repeatedly stated on June 5 that in several sectors European companies not only passed on the entire increased cost of raw materials to the prices their customers paid but, in addition, several found the opportunity to increase their profit margins.

A large part...