Why Rising Inflation Is Great News for AMC Entertainment Stock
Inflation is a concise term representing the measurement of price changes over time. The coronavirus pandemic caused mass disruption in supply chains and changed customer behavior, affecting prices. Those changes have been felt over the past 18 months in the prices that people pay for many products and services.
The U.S. Bureau of Labor Statistics reported that prices for all consumer goods rose on average by 5.4% over the last 12 months. Because it's an average, prices for some items may have increased more than others. For businesses with a high level of fixed costs, rising prices can actually be a good thing. Most of their costs stay the same (fixed) while they can start to raise prices on the products or services they are selling. And because price increases are felt broadly, they are less likely to lose customers when they increase their prices.
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