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Finance Dictionary and Glossary of Investment Terms
Cost-push inflation
Definition 1.
Inflation caused by rising prices, usually from increased raw material or labor costs that push up the costs of production. Related: Demand-pull inflation.
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Definition 2.
Persistently rising general price levels brought about by rising input costs. In general, there are three factors that could contribute to cost-push inflation: rising wages, increases in corporate taxes, and imported inflation (when imported raw or partly-finished goods become more expensive, often as a result of currency depreciation). For inflation to be cost-push in nature, increases in input prices must affect a large proportion of the country's producers, so as to be able to push up the general price level.
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