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Cost-push inflation

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cost-push inflation

When the driving force behind rising prices is the increased cost of producing goods, rather than stronger demand by consumers.

 


cost-push inflation
inflation caused by rising prices, which follow on the heels of rising costs. This is the sequence: When the demand for raw materials exceeds the supply, prices go up.

Another cause of cost-push inflation is an increase in the cost of materials or services rendered to the manufacturer. If a foreign economy collapses, the cost of importing materials from that country can rise exponentially.

Cost-Push Inflation
Inflation whose initial cause is cost increases rather than excess demand. See also demand-pull inflation.
Demand-Pull Inflation ...

Cost-push inflation Inflation caused by a continually decreasing short-run aggregate supply curve.
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Cost-push Inflation
Inflation caused by rising prices, usually from increased raw material or labor costs that push up the costs of production.
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Cost-push inflation - Inflation that has its origin in cost increases. This Inflation which occurs as a result of , businesses facing increased costs, which are then passed on to consumers in the form of higher prices.

COST-PUSH INFLATION: Inflation of the economy's average price level induced by decreases in aggregate supply that result from increases in production cost.

Cost-Push Inflation Versus Demand-Pull Inflation
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cost-push inflation
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What may look like 'cost-push inflation' is often 'demand-pull inflation' in disguise. Suppose that expansion of the money supply fuels an increase in demand for retail goods and services.

Related: Cost-push inflation. Demand shock An event that affects the demand for goods and services in an economy. Denomination Corresponds to the face value of currency units, coins, and securities.

Demand-pull inflation is caused by excessive demand in an economy, while cost-push inflation is caused by rising input costs.

Inflationary spiral caused by rapid increases in wages. See also Cost-Push Inflation; Demand-Pull Inflation; Inflation.
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A theory of inflation or price increases resulting from so-called excess demand. Related: Cost-push inflation.
Demand shock
An event that affects the demand for goods and services in an economy.
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Demand Pull Inflation definition :
A theory of inflation or price increases resulting from so-called excess demand. Related: Cost-push inflation.
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Definition: Price increases driven by a shortage of goods and services as compared to demand. Definition: [crh] A theory of inflation or price increases resulting from so-called excess demand. Related: Cost-push inflation.

It may also result from an increase in the cost of some critical input, such as steel or petroleum, which then triggers off a gradual rise in prices in general; this is known as 'cost-push inflation'.

cost-push inflation "An option that permits an insurance policy holder to purchase increasing term... cost/benefit analysis A technique designed to determine the feasibility of a project or plan by quantifying its costs and benefits.

See also: Demand-pull inflation, Expense, Banks, Saving, Credit risk