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Investments glossary

Cost-Push Inflation

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Quotes of the day:

Chains are chains even if made of gold, they just tie you.

— Patrick Mahony

Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials. Higher costs of production can decrease the aggregate supply (the amount of total production) in the economy. Since the demand for goods hasn’t changed, the price increases from production are passed onto consumers creating cost-push inflation.

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