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Cost-Push Inflation

   Also found in: Dictionary/thesaurus, Wikipedia, Hutchinson 0.03 sec.
Cost-push inflation
Inflation caused by rising prices, usually from increased raw material or labor costs that push up the costs of production. Related: Demand-pull inflation.

Cost-Push Inflation
Inflation caused by rising costs of production. For example, if the price of a barrel of oil rises significantly, this could cause fuel prices to increase which, in turn, increases costs for transportation of food, tools, and other goods, which can cause some level of inflation across an economy. Cost-push inflation contrasts with demand-pull inflation, which is caused by a rise in demand on the part of consumers.

cost-push inflation
Rising consumer prices caused by businesses passing along increases in their own costs for labor and materials. Cost-push inflation does not necessarily result in rising corporate profits because businesses may be unable to pass through all of their cost increases. Compare demand-pull inflation.


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The government should do its utmost to prevent stagflation, which is a recession accompanied by cost-push inflation.
Within this debate there are two particular areas of discussion: is the rise in cost-push inflation (from higher prices for food, energy and other commodities) likely to set off a 1970s-style burst of wage inflation?
The bank said, "The downward trend of inflation stemmed from the slumped domestic demand which helped reduce pressure from the demand-pull inflation while the continued appreciation of the baht helped mitigate the cost-push inflation from potentially rising oil prices.
 
 
 
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