Keywords: Cost-push Inflation Demand-pull Inflation
Inflation due to increase in the production cost is defined as Cost-push Inflation" while inflation because of increased demand for goods is defined as Demand-pull Inflation.
Given only limited risks of demand-pull inflation
, (the BOJ) is expected to stick to a wait-and-see stance by around summer next year.
arises from a positive output gap ([x.
The bank said, "The downward trend of inflation stemmed from the slumped domestic demand which helped reduce pressure from the demand-pull inflation
while the continued appreciation of the baht helped mitigate the cost-push inflation from potentially rising oil prices.
Although imports might meet some of the extra demand and mitigate the price increase, excess aggregate demand is likely to lead to demand-pull inflation
In this respect, the question of whether it is possible to implement a test which will distinguish between cost-push and demand-pull inflation
has a direct relevance to the selection of policies designed to avoid inflation.
Brazil could experience a demand-pull inflation
due to the expected above-potential growth, while Mexico is facing a supply-side inflation shock because of its recently approved tax increase package.
Large tax cuts added to demand-pull inflation
Excessive growth in money supply results in the phenomenon of too much money chasing too few goods, leading to demand-pull inflation
The Phillips curve gives operational content to demand-pull inflation
, which becomes the inflation predicted by the output gap ([x.
This is called demand-pull inflation
, in which prices are forced upwards because of a high demand, and excessive monetary growth.
When the aggregate demand of goods is more than the aggregate supply of goods, it is called demand-pull inflation
At the moment, there is no complete alternative to Iranian oil, hence demand-pull inflation
will continue to prevail for as long no country comes on board to offset the halted exports by Iran," the Ministry of Mines and Energy said when it announced the price increases.
Since inflation, in this situation, is a result of price hike, it is termed as demand-pull inflation