What is cost push inflation?

Cost push inflation is the result of an increase in the price of the factors of production e.g. labour, raw materials. For example, an increase in the price of oil will increase the price of most raw materials. Firms will have to increase their prices to sustain the same level of profits. This increase in price across the economy is cost push inflation.

NO
Answered by Nick O. Economics tutor

5054 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain what you understand by the Lorenz Curve and Gini Coefficient.


'What are the disadvantages of economic growth?'


How can I evaluate the extent to which increased competition leads to higher levels of economic efficiency?


Must I take Economics for my GCSES before A-levels? If not, will the catching up be difficult?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences