Home >  Blossary: Causes of Inflation  >  Term: Cost-Push Inflation
Cost-Push Inflation

This isn't as common as demand-pull inflation, because it only occurs when there is a shortage of supply combined with enough demand to allow the producer to raise prices. Wage inflation can contribute to cost-push inflation. This is usually caused by strong labor unions. A company with the ability to create a monopoly can also create cost-push inflation. That's because controls the supply of a good or service.

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Causes of Inflation

Category: Business

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