Cost-push inflation
What Cost-push inflation means in Economics A-Level, as defined for AQA.
Definitions of Cost-push inflation
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Reference: AQA
A rise in the general price level caused by higher UK production costs, often imported when global commodity prices increase due to surging demand in emerging economies.
Results from leftward shifts in short-run aggregate supply due to increased costs of production, pushing the price level up while reducing real output.
Topics that use Cost-push inflation
- Inflation and deflation (AQA A-Level)
Related terms
- Aggregate demand
- Debt and wealth effects
- Deflation
- Deflationary policies
- Demand-pull inflation
- Depreciation
- Disinflation
- Inflation
Using Cost-push inflation in the exam
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