theory is another inflation Keynesian theory which knows the reason of inflation in increase of prices due to labor unions bargaining and rising product costs.
Anyhow, the recipe of the IMF suggesting increase in the electricity and gas tariff would create more problems and difficulties, as increase in the rates of utilities produces ' multiplier effect', leading to cost-push inflation
There are basically two kinds of inflation: demand-pull and cost-push inflation
, and it is a widely accepted fact that inflation in Turkey is caused by demand, not costs.
This may lead to cost-push inflation
in the country.
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.
arises from increases in relative prices particular to individual markets that pass through permanently to the price level.
The bad news is that declining revenues, coupled with cost-push inflation
, could mean that General Synod will once again face a deficit budget in 2014.
The UAE is going to face cost-push inflation
because a lot of its consumer and intermediate production goods are imported [from India]," Dalton Garis, an Abu Dhabi-based economist, told Gulf News.
Earnings for those oil and gas companies with larger E&P exposure are more vulnerable to cost-push inflation
, as their E&P margins are smaller than those of integrated companies.
However, as the company uses different commodities and raw materials, cost-push inflation
remains a key risk factor.
The move is totally against the expectations on business doing community as the ground has been set for cost-push inflation
, he added.
Secondly, by pushing Pakistan to increase its electricity tariff and interest rates, the cost of production has increased, resulting in cost-push inflation
on the one hand, and making Pakistani products uncompetitive in the world market on the other, in addition to increasing poverty because of inflation.