Cost -Push inflation

Cost push inflation represent inflation due to price rise of inputs in the form of increased raw material cost, electricity charges or wage rate (including a rise in profit margin made by the producer). Such a price rise results in increased cost and price of the product leading to cost push inflation. Price rise of key inputs like crude oil products may trigger price spiralling effect on other goods and services. In India, cost push inflation is the major supply side factor producing inflation.

January 21, 2018
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