Definition: Cost push inflation is inflation led to by rise in price of inputs prefer labour, raw material, etc. The boosted price of the components of production leads to a diminished supply of these goods. While the need remains constant, the prices of assets increase bring about a rise in the in its entirety price level. This is in essence expense push inflation.Description: In this case, the as whole price level rises due to greater costs of production which shows in terms of boosted prices of goods and also commodities i m sorry majorly usage these inputs. This is inflation motivated from supply next i.e. Because of much less supply. The opposite impact of this is called need pull inflation where higher demand triggers inflation.Apart from climb in price of inputs, there can be other factors leading come supply side inflation such as natural disasters or depletion of organic resources, monopoly, federal government regulation or taxation, adjust in exchange rates, etc. Generally, expense push inflation may happen in case of one inelastic demand curve where the demand cannot it is in easily changed according to rising prices.Also See: Demand-Pull Inflation, wage Price Spiral, aggregate Demand, profit Margin




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