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

5363 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain the difference between productive efficiency and dynamic efficiency.


Describe the market structure for the supermarket industry in the UK. Give reasons for your answer.


Explain why the housing market is not a perfectly competitive market.


Define what is meant by GDP, and explain the limitations of using it as a proxy for economic growth.


We're here to help

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

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning