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Chart of the Day: Shrinking margins

Chart courtesy - Soberlook.com

This interesting chart, shared by Soberlook.com shows the difference between the input and output components of producer price index (PPI) for the United Kingdom.

The recent drop in the pound has accelerated the input cost, while the output cost hasn't followed through.

But, more interesting is the fact that the margins, which declined since 2006 have hardly improved over the course of the recovery. The global acceleration of income inequality is to blame largely for such. 

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