Glossary · Macro · Inflation

Cost-push inflation

Inflation caused by production costs rising, usually a jump in oil or wages, so firms charge more at every level of output. On the AD-AS graph it is short-run aggregate supply shifting left, and it brings higher prices together with lower output.

Watch it happen step by stepTaught in: Causes of Inflation

Related terms

Demand-pull inflationStagflationShort-run aggregate supply (SRAS)

More from inflation

Consumer price index (CPI)DeflationHeadline vs core inflationHyperinflationInflationLaspeyres price indexMenu costs

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