Home >  Blossary: Causes of Inflation  >  Term: Cost-Push Inflation
Cost-Push Inflation

This isn't as common as demand-pull inflation, because it only occurs when there is a shortage of supply combined with enough demand to allow the producer to raise prices. Wage inflation can contribute to cost-push inflation. This is usually caused by strong labor unions. A company with the ability to create a monopoly can also create cost-push inflation. That's because controls the supply of a good or service.

0 0

Causes of Inflation

Category: Business

Total terms: 6

Other terms in this blossary

Δημιουργός

  • rufaro9102
  • (Harare, Zimbabwe)

  •  (Bronze) 259 points
  • 100% positive feedback
© 2024 CSOFT International, Ltd.