What Is Cost-Push Inflation: Meaning, Causes and Examples

What Does Cost-Push Inflation Mean?

What Are the Causes of Cost-Push Inflation?

What Are the Examples of Cost-Push Inflation?

FAQs About What Is Cost Push Inflation

How do the Indian government and monetary authorities control cost-push inflation?

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The Indian government introduces a deflationary fiscal policy, whereas the monetary authorities escalate the interest rates. As a result, it increases the borrowing cost and lessens customer spending and investment.

How does cost-push inflation differ from demand-pull inflation?

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Cost-Push Inflation arises due to an escalation in the price of inputs owing to the scarcity of production costs, resulting in a reduced supply of outputs. On the other hand, demand-pull inflation occurs as the aggregate demand upsurges faster than aggregate supply.

What are the types of cost-push inflation?

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Cost-push inflation is subdivided into wage-push Inflation, profit-push inflation, and material-cost-push inflation.

Who determines the cost-push inflation rate in India?

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According to the RBI Act 1934, the rate of inflation in India is decided by the Reserve Bank of India (RBI) and the Indian Government.

Disclaimer

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  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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