cost-push inflation: meaning, definition, pronunciation and examples
C2Technical, Academic, Business
Quick answer
What does “cost-push inflation” mean?
A type of inflation caused primarily by increases in the cost of production inputs, leading producers to raise prices to maintain profit margins.
Audio
Pronunciation
Definition
Meaning and Definition
A type of inflation caused primarily by increases in the cost of production inputs, leading producers to raise prices to maintain profit margins.
Inflation driven by rising costs for wages, raw materials, taxes, or imported goods, which are passed on to consumers through higher prices for finished goods and services.
Dialectal Variation
British vs American Usage
Differences
The term is identical in spelling and usage. Theoretical frameworks in economics are consistent across both regions.
Connotations
Generally neutral and technical. May carry negative connotations linked to economic instability and reduced purchasing power.
Frequency
Equally frequent in academic economics and financial journalism in both the UK and US.
Grammar
How to Use “cost-push inflation” in a Sentence
Cost-push inflation is caused by X.Y resulted in a period of cost-push inflation.The government is struggling with cost-push inflation.Vocabulary
Collocations
Examples
Examples of “cost-push inflation” in a Sentence
adjective
British English
- The cost-push inflation theory was debated.
- They studied cost-push inflation dynamics.
American English
- A cost-push inflation spiral is difficult to break.
- The report identified cost-push inflation pressures.
Usage
Meaning in Context
Business
Used in strategy meetings and financial reports to explain rising input costs and necessary price hikes.
Academic
Central to macroeconomic models and theories explaining price level determinants.
Everyday
Rare in casual conversation; might appear in news summaries explaining rising living costs.
Technical
Precise term in economic forecasting, policy analysis, and central bank communications.
Vocabulary
Synonyms of “cost-push inflation”
Strong
Neutral
Weak
Vocabulary
Antonyms of “cost-push inflation”
Watch out
Common Mistakes When Using “cost-push inflation”
- Using it to describe any inflation (confusing with demand-pull). Misspelling as 'cost-push inflation' (missing hyphen or space). Using it as a verb (e.g., 'The market cost-push inflates').
FAQ
Frequently Asked Questions
Cost-push originates from the supply side (rising production costs), while demand-pull originates from the demand side (excess consumer/monetary demand).
Yes, this is often called 'stagflation' when cost-push inflation coincides with stagnant demand and high unemployment.
Policies are difficult, as raising interest rates to cool demand can worsen economic slowdown. Strategies may include supply-side policies (subsidies, tax cuts for producers), wage controls, or attempts to increase productivity.
Yes, it is a fixed, hyphenated compound noun. The hyphens are important for clarity, linking 'cost-push' as a single modifier for 'inflation'.
A type of inflation caused primarily by increases in the cost of production inputs, leading producers to raise prices to maintain profit margins.
Cost-push inflation is usually technical, academic, business in register.
Cost-push inflation: in British English it is pronounced /ˈkɒst pʊʃ ɪnˈfleɪ.ʃən/, and in American English it is pronounced /ˈkɔːst pʊʃ ɪnˈfleɪ.ʃən/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “A vicious cycle of cost-push inflation”
Learning
Memory Aids
Mnemonic
Imagine a worker (cost) PUSHing a shopping cart (inflation) up a hill because filling the cart (production) got more expensive.
Conceptual Metaphor
INFLATION IS AN UPWARD PRESSURE (pushed from below by costs).
Practice
Quiz
Which scenario is a classic example of cost-push inflation?