Fisheries Economics

6.1.5.4. Cost Push Inflation

The cost-push inflation is caused by wage-push inflation and profit push inflation. Wage push inflation refers to a rising price level by rising money wage rates. The concept of wage push inflation is limited to increases in labour costs which are the causes and not the results of higher prices. Profit – push inflation occurs when oligopolists and monopolists in their pursuit of more profit raises prices more than required to offset the cost.