Cost-Push Inflation

What Does It Mean?
What Does Cost-Push Inflation Mean?
A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Investopedia Says
Investopedia explains Cost-Push Inflation
Cost-push inflation develops because the higher costs of production factors decreases in aggregate supply (the amount of total production) in the economy. Because there are fewer goods being produced (supply weakens) and demand for these goods remains consistent, the prices of finished goods increase (inflation).
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