Cost Push Inflation Example

December 5, 2022 1 Min read Views 114 BUSINESS

It is a form of inflation that occurs when the prices of resources are increased, meaning the companies are receiving less raw material for the same price. Companies cannot afford to increase their production rate to meet the demand, therefore, to keep the product at a relatively the same price, the production is scaled back.

Tags: Cost Push Inflation
You May Interested More:
What Is An Cost Push Inflation Example − Basically, cost push inflation is when the demand for a certain product outstrips the supply. However, not all goods rise in price uniformly. Instead, the....
Cost Push Inflation Examples − Using a cost push inflation example is a good way to understand how inflation works. Cost push inflation occurs when the cost of producing goods....