cost-push
Expense-driven price increases
Cost-push describes inflation caused by rising production costs rather than increased demand.
When wages, raw materials, or energy prices climb, businesses pass those costs to consumers through higher prices.
Economists distinguish cost-push inflation from demand-pull inflation: The oil embargo triggered cost-push inflation throughout the economy.
Amounts charged for goods
- wagesPayment for work
- supplyFurnish or stock
- stagflationStagnant growth meets inflation
- monetaryOf or about currency
spiral · purchasing power · CPI · pass-through · markup · consumer prices · indexation · price level
Method for determining costs
- profit marginsPercentage kept from sales
- overheadLocated directly above
- breakevenNo profit, no loss
- competitivenessDrive to outperform others
Severe petroleum supply disruption
- OPECPetroleum exporters' coalition
- commodity pricesCost of traded raw goods
- raw materialsUnprocessed production inputs
- supply disruptionInterruption in goods flow
shortage · fuel prices · 1970s · petroleum · resource scarcity · supply-side · bottleneck · trade disruption
Higher compensation over time
- union demandsWorkers' negotiated conditions
- minimum wageLowest lawful hourly rate
- collective bargainingJoint worker-employer talks
- payrollStaff wages collectively
compensation · workforce · labor market · strikes · overtime · staffing · human capital · labor shortage
prices
Amounts charged for goods
- wagesPayment for work
- supplyFurnish or stock
- stagflationStagnant growth meets inflation
monetary · spiral · purchasing power · CPI · pass-through · markup · consumer prices · indexation · price level · macroeconomics
pricing strategy
Method for determining costs
- profit marginsPercentage kept from sales
- overheadLocated directly above
- breakevenNo profit, no loss
competitiveness · market power · procurement · operational efficiency
oil crisis
Severe petroleum supply disruption
- OPECPetroleum exporters' coalition
- commodity pricesCost of traded raw goods
- raw materialsUnprocessed production inputs
supply disruption · shortage · fuel prices · 1970s · petroleum · resource scarcity · supply-side · bottleneck · trade disruption · geopolitical
wage increases
Higher compensation over time
- union demandsWorkers' negotiated conditions
- minimum wageLowest lawful hourly rate
- collective bargainingJoint worker-employer talks
payroll · compensation · workforce · labor market · strikes · overtime · staffing · human capital · labor shortage · contract negotiations