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Economics vocabulary · Inflation and Prices

Cost-push inflation

Meaning in economics, with examples

nounAdvanced term

In economics, cost-push inflation means: Inflation caused by rising production costs, such as higher energy prices, wages or import costs, which firms pass on to their customers.

In Turkish: maliyet enflasyonu, maliyet kaynaklı enflasyon

How it is used

Contrasted with demand-pull inflation in textbooks and policy debates. Typical triggers are oil shocks and a weaker currency. It is difficult for central banks because it raises prices while slowing growth, the mix behind stagflation.

Example sentences

  1. Higher electricity and gas prices have fuelled cost-push inflation.

  2. Economists disagree on whether this is cost-push inflation or the result of strong demand.

Common collocations

  • cost-push pressures
  • cost-push factors
  • cost-push and demand-pull inflation
  • demand-pull inflationInflation that happens when total demand in the economy grows faster than the supply of goods and services, often summed up as too much money chasing too few goods.
  • inflationA general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.
  • shockA sudden, unexpected event that has a large effect on an economy, such as a jump in oil prices, a natural disaster or a financial crisis.
  • pass-throughThe degree to which a change in costs, especially in the exchange rate, is passed on to consumer prices.
  • producer price indexA measure of the average change in the prices that domestic producers get for their goods at the factory gate, before taxes and shop margins are added.

More terms: Inflation and Prices

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This page explains English vocabulary for learners. It is not financial advice.