Cost-Push Inflation

What does it Mean? A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Investopedia Says... 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).

Terms Related Links

Aggregate Demand
Aggregate Supply
Demand-Pull Inflation
Inflation
Profit Margin
Supply-Side Theory

Terms Related Links
Cost-Push Inflation Versus Demand-Pull Inflation - Gain a deeper understanding of aggregate supply and demand, forces which raise the price of goods and services.

The Consumer Price Index: A Friend To Investors - As a measure of inflation, this index can help you make key financial decisions.

Inflation: What Is Inflation? - What is inflation? This section breaks down the differest types of inflation, including stagflation and deflation, and breaks down the causes and costs of inflation.

Stagflation, 1970s Style - Find out how Milton Friedman's monetarist theory helped bring the U.S. out of the economic doldrums.

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