How Do You Spell COST-PUSH INFLATION?

Pronunciation: [kˈɒstpˈʊʃ ɪnflˈe͡ɪʃən] (IPA)

The term "cost-push inflation" refers to a type of inflation where increased costs of production lead to higher prices for goods and services. It is spelled as /kɔst pʊʃ ɪn'fleɪʃən/, with the stress on the first syllable of "cost" and the second syllable of "push." The "k" sound at the beginning of "cost" is a voiceless velar stop, while the "sh" sound in "push" is a voiceless palato-alveolar fricative. In summary, the spelling of "cost-push inflation" matches its phonetic transcription.

COST-PUSH INFLATION Meaning and Definition

  1. Cost-push inflation is a type of inflation characterized by a persistent rise in the overall price level as a result of increases in production costs. It occurs when the cost of inputs, such as wages, raw materials, energy, or taxes, increases for businesses, leading them to raise the prices of their goods and services in order to maintain their profit margins. This upward pressure on prices ultimately results in a general increase in the cost of living for consumers.

    The primary drivers of cost-push inflation are often external factors beyond the control of businesses, such as government policies, global market conditions, or natural disasters, which cause disruptions in the supply chain. For example, if the government imposes higher taxes on businesses or increases the minimum wage, costs of production will rise, prompting producers to pass on these increased costs to consumers.

    Cost-push inflation creates a challenging environment for both consumers and businesses. As prices rise, consumers experience a decrease in purchasing power, diminishing their ability to afford goods and services. Businesses, on the other hand, face a dilemma of either accepting lower profit margins or raising their prices, risking a decline in consumer demand and potential loss of market share.

    Central banks and policymakers often employ various measures to combat cost-push inflation, such as adjusting interest rates, implementing price controls, or introducing policies to enhance productivity. However, these actions can have wider economic implications, and striking a balance between controlling inflation and fostering economic growth remains a complex challenge.

Common Misspellings for COST-PUSH INFLATION

  • costppush inflation
  • cost0-push inflation
  • costp-push inflation
  • costmpush inflation
  • cost-pushinnflation

Etymology of COST-PUSH INFLATION

The word "cost-push inflation" is made up of two components: "cost" and "push".

The term "cost" refers to the expenses involved in the production of goods and services. This includes items such as wages, raw materials, energy, and other input costs required for production.

The term "push" implies a force or pressure that drives something. In the context of inflation, it suggests that there is upward pressure on prices.

Therefore, the term "cost-push inflation" refers to a situation where inflation is primarily caused by an increase in production costs, which then leads to higher prices for goods and services. The word "push" implies that the rise in production costs is the driving force behind the inflation.

Plural form of COST-PUSH INFLATION is COST-PUSH INFLATIONS

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