Cost-pull Inflation (Noun)
Meaning
Inflation caused by an increase in the costs of production.
Classification
Nouns denoting natural processes.
Examples
- The rise in wages and raw materials led to cost-pull inflation, causing the company to increase its prices.
- The oil embargo triggered a wave of cost-pull inflation, as the increased cost of fuel was passed on to consumers.
- The drought led to a shortage of wheat, resulting in cost-pull inflation as bakeries and food manufacturers raised their prices.
- The government's decision to impose a carbon tax led to cost-pull inflation, as companies passed on the increased costs to consumers.
- The shortage of skilled labor in the construction industry led to cost-pull inflation, as builders increased their prices to cover the higher wages.