cost-pull inflation Synonyms
No Synonyms and anytonyms found
cost-pull inflation Meaning
Wordnet
cost-pull inflation (n)
inflation caused by an increase in the costs of production
cost-pull inflation Sentence Examples
- Cost-pull inflation occurs when rising production costs lead to increased prices for goods and services.
- A key characteristic of cost-pull inflation is the upward pressure on prices driven by rising input costs.
- The oil crisis in the 1970s is often cited as an example of cost-pull inflation, as higher oil prices elevated production costs across various industries.
- Companies may pass on increased production costs to consumers, contributing to cost-pull inflation.
- Wage hikes can also contribute to cost-pull inflation if they lead to higher production costs for businesses.
- Government policies that increase regulations or taxes can exacerbate cost-pull inflation by raising operating expenses for businesses.
- Cost-pull inflation can lead to a decrease in purchasing power as consumers face higher prices without a corresponding increase in income.
- Economists study cost-pull inflation to understand its effects on the economy and develop strategies to mitigate its impact.
- Central banks may adjust monetary policy in response to cost-pull inflation to stabilize prices and maintain economic stability.
- Cost-pull inflation is often contrasted with demand-pull inflation, which occurs when consumer demand outpaces supply, driving prices higher.
FAQs About the word cost-pull inflation
inflation caused by an increase in the costs of production
No synonyms found.
No antonyms found.
Cost-pull inflation occurs when rising production costs lead to increased prices for goods and services.
A key characteristic of cost-pull inflation is the upward pressure on prices driven by rising input costs.
The oil crisis in the 1970s is often cited as an example of cost-pull inflation, as higher oil prices elevated production costs across various industries.
Companies may pass on increased production costs to consumers, contributing to cost-pull inflation.
