WHAT economic phenomenon may be cost-push
Which economic phenomenon may be described as either cost-push
IMF's recipe of increase in the rates of utilities produces 'the multiplier effect', leading to cost-push
inflation making it impossible for the local producers to compete in the world market.
The key disinflationary factor driving inflation towards the target tolerance band will be the lower cost-push
pressure in food production.
He said that this will also leave painful impact on the ordinary person which is suffering a lot due to cost-push
inflation in the country.
While it is expected that the recent labor market reform initiatives will lead to a cost-push
inflationary pressure, the current trend shows this is not the case, at least for now.
Similar to the previous month's inflation, the acceleration was entirely attributed to intensifying cost-push
factors: increasing prices of fruits and vegetables and grain-related products as well as the indexation of transportation tariffs.
From a macroeconomic perspective, China's current inflation is attributable both to demand-pull and cost-push
Mukherjee said that sustained high non-food primary prices are creating cost-push
inflationary conditions in the manufacturing sector.
While, these reforms will induce cost-push
inflationary pressures in the economy, in the short run, but these will help sustain high growth in the long run," the Report added.
Li said, 'This round of price inflation was triggered by 'cost-push
' movement, but if monetary policy is too loose, it will cause cost-push
inflation to become more serious inflation.
This introduces a cost-push
effect on prices, which can be controlled by high interest rates, " says Joshi.