cost-push inflation
Production expense spiral
Cost-push inflation is a rise in prices driven by increased production costs—higher wages, raw materials, or energy—rather than by consumer demand.
When businesses pay more to make goods, they pass those costs to buyers.
Contrast with demand-pull inflation, where prices rise because people want more than supply can meet.
Payment for work performed
- minimum wage increaseLegally required higher hourly compensation
- collective bargainingJoint worker-employer talks
- union demandsWorkers' negotiated conditions
- salary increaseHigher compensation rate
wage hike · living wage · overtime costs · wage negotiation · earnings growth · remuneration · pension costs
Unprocessed production inputs
- oil shockAbrupt petroleum supply disruption
- commoditiesTradeable raw materials
- labor shortageInsufficient workforce supply
- tariffsTaxes on imports
tax hikes · exchange rate · overhead · markup · supply disruption · transportation costs · utility costs · import duties
Self-perpetuating harmful pattern
- escalationProgressive increase in intensity
- pass-throughTransferred without retention
- profit marginRevenue exceeding costs ratio
- market powerControl over transaction terms
price adjustment · pricing power · stagflation · indexation · expectations
Charges for transporting cargo
- inventory shortageInsufficient goods on hand
- distribution costsExpenses for delivering products
- trade barriersRestrictions on cross-border commerce
- bottleneckConstriction limiting throughput
labor costs
Payment for work performed
- minimum wage increaseLegally required higher hourly compensation
- collective bargainingJoint worker-employer talks
- union demandsWorkers' negotiated conditions
salary increase · wage hike · living wage · overtime costs · wage negotiation · earnings growth · remuneration · pension costs
raw materials
Unprocessed production inputs
- oil shockAbrupt petroleum supply disruption
- commoditiesTradeable raw materials
- labor shortageInsufficient workforce supply
tariffs · tax hikes · exchange rate · overhead · markup · supply disruption · transportation costs · utility costs · import duties
vicious cycle
Self-perpetuating harmful pattern
- escalationProgressive increase in intensity
- pass-throughTransferred without retention
- profit marginRevenue exceeding costs ratio
price adjustment · market power · pricing power · stagflation · indexation · expectations
freight costs
Charges for transporting cargo
- inventory shortageInsufficient goods on hand
- distribution costsExpenses for delivering products
- trade barriersRestrictions on cross-border commerce
- inflationCPI, price hikes, stagflation, cost of living, shrinkflation
- macroeconomicsGDP, GNP, gross domestic product, gross national product, money supply