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Economics
Cost-Push Inflation
When prices rise because the cost of making things (like oil or wages) goes up, not because people are buying more.
Cost-push inflation squeezes businesses and can slow the economy because companies pass higher costs to customers. It's the opposite of demand-pull inflation.It's like the price of pizza going up because cheese and flour suddenly cost more at the store, even if everyone still wants the same number of slices.
Real world: When oil prices spike, gas costs more, trucking costs more, and suddenly everything from groceries to plane tickets gets more expensive — that's cost-push inflation.
💡 Cost-push inflation hurts everyone — workers want raises and businesses want to keep profits, so the Fed often has to step in and cool things down.