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Definition of 'Wage Push Inflation'
A general increase in the cost of goods that is preceded by and results from an increase in wages. In order to maintain corporate profits after an increase in wages, employers must increase the prices they charge for the goods and services they provide. The overall increased cost of goods and services has a negative effect on the wage increase, and eventually, higher wages will be again needed to compensate for the increased prices for consumer goods.
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Investopedia explains 'Wage Push Inflation'
Wage push inflation is an inflationary spiral that occurs when wages are increased and business must, in order to pay the higher wages, charge more for their products and/or services. The wage increase, then, is not as helpful to employees since the cost of goods has also risen. If prices remain increased, workers will eventually require another wage increase to compensate for the cost of living increase.
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Search results for 'Wage Push Inflation'
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http://www.investopedia.com/university/inflation/inflation1.asp
... Cost-Push Inflation - When companies' costs go up, they ... of people are expecting
(anticipated inflation), then we ... contracts that include automatic wage hikes as ...
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http://www.investopedia.com/university/inflation/inflation5.asp
... hyperinflation and stagflation. Two theories as to the cause of inflation are
demand-pull inflation and cost-push inflation. When there ...
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http://www.investopedia.com/articles/06/gdpinflation.asp
... (To read more, see Cost-Push Versus Demand ... require that companies reduce real wages,
or wages after inflation. In a theoretical world, a 2% wage increase during ...
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http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/determining-inflation.asp
... 4.10 Types of Unemployment; 4.11 The Consumer Price Index & Inflation; 4.12
Aggregate Supply & Aggregate Demand; 4.13 Short and Long ...
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http://www.investopedia.com/articles/economics/08/keynesian-economics.asp
... levels the real, inflation-adjusted wage rate would ... the role money supply has on
inflation rather than the ... Government spending can push out spending by private ...
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http://financialedge.investopedia.com/financial-edge/1110/Santas-Financial-Naughty-List-For-2010.aspx
... have the amusing side-effect of exporting inflation to China - a ... Banks Mortgage lenders
made a late push to get ... is still nearly 10% and overall wage growth is ...
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http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/fiscal-policy.asp
... 4.10 Types of Unemployment; 4.11 The Consumer Price Index & Inflation; 4.12
Aggregate Supply & Aggregate Demand; 4.13 Short and Long ...
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