cost-push inflation investment & finance definition
Inflation that is caused by rising wages and
benefits. As a result of rising compensation, employees may feel relatively
wealthy and increase
their purchases, which can produce inflation. Federal Reserve policymakers
closely watched for cost-push inflation during the market boom of the late
1990s, but none emerged.
See cost-push inflation in Wall Street Words
Rising consumer prices caused by businesses passing along increases in their own costs for labor and materials. Cost-push inflation does not necessarily result in rising corporate profits because businesses may be unable to pass through all of their cost increases. Compare
demand-pull inflation.
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