cost-push inflation

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cost-push inflation

Theory of inflation which states that inflation is caused by increases in the costs of production. A rise in wages, profit levels, or product inputs to the firm will push up its costs. It responds by increasing its prices. This then contributes to inflation in the economy.

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inflation

Businesses couldn't absorb such price increases so they passed them on to customers; that's cost-push inflation.

Monetarism's Counterattack by Canada and the World Backgrounder

Economic and fiscal policy minister Hiroko Ota warned of such cost-push inflation reflecting soaring raw material costs.

2ND LD: Japanese inflation at fastest pace in over 15 years by Japan Weekly Monitor

Samuelson and Solow (1960) argued that if costs and prices are insignificantly sensitive to demand-restraint policies such that unemployment significantly increases, then cost-push inflation is dominant; and likewise the reverse is true for demand-pull inflation.

Inflation: some empirical evidence by Suliman, M. Osman; McCann, Kevin / American Economist

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