Cost-Push Inflation vs. Demand-Pull Inflation: What's the Difference? - Deepstash

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Cost-Push Inflation vs. Demand-Pull Inflation: What's the Difference?

Cost-Push Inflation vs. Demand-Pull Inflation: What's the Difference?

investopedia.com

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Cost-Push Inflation

Cost-push inflation is the decrease in the aggregate supple of goods and services stemming from an increase in the cost of production.

An increase in the costs of raw materials or labor can contribute to cost-pull inflation.

Demand-Pull Inflation

Demand-pull inflation is the increase in aggregate demand, categorized by the four sections of the macroeconomy: households, business. governments. and foreign buyers.

Demand-pull inflation can be cause by an expanding economy, increased government spending, or overseas growth.

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