RPT-GLOBAL ECONOMY WEEKAHEAD-Slow growth, inflation eats profits

Newswire

(Repeating item that initially moved on Sunday) By Emily Kaiser WASHINGTON, Dec 31 (Reuters) - Corporate profit margins are set for an uncomfortable squeeze in 2008 as companies pay more for materials yet have little leeway to raise prices. Inflation is tricky enough on its own, but when it comes along with slowing economic growth, the pain is magnified because cash-strapped consumers often force companies to absorb the bulk of the pricing pressure. Recent inflation reports suggest ...

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