What is cost push inflation?

  • Google+ icon
  • LinkedIn icon
  • 1203 views

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.

Nick O. GCSE Business Studies tutor, A Level Economics tutor

About the author

is an online A Level Economics tutor with MyTutor studying at Exeter University

Still stuck? Get one-to-one help from a personally interviewed subject specialist.

95% of our customers rate us

Browse tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok