demand-pull inflation

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Demand-pull inflation

A theory of inflation or price increases resulting from so-called excess demand. Related: Cost-push inflation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Demand-Pull Inflation

In Keynesian economics, a significant increase in prices that occurs when there is an increase in demand for goods and services such that the increase outpaces supply. The equivalent of demand-pull inflation can occur for any one product, but the term refers to situations where this happens throughout the economy. Demand may increase for a number of reasons; one example is an increase in the money supply. If persons have more money, they are more likely to buy goods and services which, in turn, drives up prices. One way to think of demand-pull inflation is to conceptualize it as too many dollars chasing too few products.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

demand-pull inflation

Rising consumer prices resulting from the demand for goods and services exceeding supply. Demand-pull inflation is likely to enhance corporate profits because businesses are able to increase the prices they charge without corresponding increases in their costs. Compare cost-push inflation.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

demand-pull inflation

see INFLATION.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

demand-pull inflation

a general increase in prices caused by a level of AGGREGATE DEMAND in excess of the supply potential of the economy. At full employment levels of output (POTENTIAL GROSS NATIONAL PRODUCT), excess demand bids up the price of a fixed real output (see INFLATIONARY GAP). According to MONETARISM, excess demand results from too rapid an increase in the MONEY SUPPLY. See INFLATION, QUANTITY THEORY OF MONEY, COST-PUSH INFLATION.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
They may be higher only at the end of the year, although oil prices are expected to drop rather than increase.As for demand inflation, it is expected to stabilise and slightly decrease at the turn of the years due to slower economic growth, according to the analyst.
Doctors cannot solve the political problems of tax-subsidized demand inflation and utilitarian rationing of care supply schemes gone awry.
When the constant is added, its coefficient is -2.70 (t= -3.50) and the coefficient on inflation in the cointegrating vector drops to -0.91, essentially the same as that of demand inflation in the panel on the right in Table 3.
The pressure from demand inflation should stabilise and gradually weaken at the turn of the year, mostly due to weakening economic growth.
"On the other hand, the transport prices dropped when compared with September, despite the growing fuel prices in October," Korscaron#328aacutek wrote in the memo, adding that one of the reasons were cheaper older cars and lower prices of plane tickets.He added that the demand inflation did not change despite the drop in transport prices and the slight increase of clothing and footwear.
Demand inflation continued to accelerate in February, influenced by growing consumption.Vegetables were the only category where prices were lower y-o-y almost by one-tenth supported by the basic effect.
Labour market impacts inflationThe tense situation on the labour market has gradually through increased pressure in demand been reflected in the inflation, Korsak noted.The demand inflation calculated through prices of tradable goods' index (without fuel prices) and market services (without imputed rent) in the UniCredit Bank calculation further accelerated in February, the highest since January 2013, i.e.
on core inflation, the SaS data showed.It is food prices that continue accelerating inflation, but in November, demand inflation and prices of fuel contributed, wrote ubomir Korsak, analyst for macroeconomic market analyses of the UniCredit Bank Czech Republic and Slovakia, in a memo.
on core inflation, the TASR newswire wrote, quoting the SaS data.It is food prices that continue accelerating inflation, but in November, demand inflation and prices of fuel contributed, wrote ubomir Korsak, analyst for macroeconomic market analyses of the UniCredit Bank Czech Republic and Slovakia.