cost-pull inflation

7.0

A rise in general prices caused by higher production costs like wages and raw materials

noun

Specialized

: inflación por costos

A surge in wages and raw material prices can trigger cost-pull inflation in an economy.

Examples

The central bank raised interest rates to counter cost-pull inflation driven by rising oil prices.
Many economists attribute current price increases to cost-pull inflation rather than excessive consumer demand.
The country is experiencing cost-pull inflation this year.
Many economists warn about rising cost-pull inflation rates.
A surge in wages and raw material prices can trigger cost-pull inflation in an economy.
Many economists attribute current price increases to cost-pull inflation rather than excessive consumer demand.
The central bank raised interest rates to counter cost-pull inflation driven by rising oil prices.

Antonyms

demand-pull inflation

Specialized

7.7

A rise in prices when people want to buy more things than before

Surface Forms

cost-pull inflation singular

cost-pull inflations plural

Morphology

cost-pull + inflation

The headword clearly names a type of inflation and the constituent 'cost' signals that rising production costs are the cause, so a B1 learner who knows 'cost' and 'inflation' can infer the general idea. However, 'cost-pull' is nonstandard (the usual collocate is 'cost-push') and the role of 'pull' is not an immediately predictable way to signal causation in this compound, so full meaning and conventional usage require prior exposure.

Etymology

Cost-pull inflation comes from a simple image: rising costs pull prices up like a rope, so higher wages or materials make sellers raise their prices. That's why it means 'a rise in general prices caused by higher production costs'.