Higher loan-repayment rates means further cost-push
This won't be a demand-pull inflation but a cost-push
Uwaleke recalled that the monthly reports by the National Bureau of Statistics (NBS) had shown that inflation in Nigeria, against the backdrop of low economic activities, was more of the cost-push
type than demand-pull.
KARACHI -- Industry leaders on Friday strongly opposed the possible withdrawal of the 5th Schedule of Customs Act fearing it would not only render domestic industry uncompetitive but also unleash fresh wave of cost-push
inflation in the country.
These threats, however, are all driven by the so-called cost-push
forces, meaning they are in the supply side of the economy, thereby best addressed by nonmonetary policy measures-such as the recently passed rice tariffication law.
Meanwhile, inflation continued to increase, mainly due to cost-push
factors and some persistence in underlying demand pressures.
The downward pressure on the rupee as well as cost-push
inflation will drive inflationary pressure and increase the cost of construction materials, although the increase may be limited as prices have increased significantly in 2018, according to the first issue of AIIB publication: 'Asian Infrastructure Finance 2019: Bridging Borders: Infrastructure to Connect Asia and Beyond'.
According to Mapa, the 2018 inflation zoomed well-past BSP's inflation target as a confluence of bad weather, disrupted supply chains, currency depreciation and tax reform fomented cost-push
WHAT economic phenomenon may be cost-push
Espenilla said the "unfortunate confluence of cost-push
factors" pulled consumer prices higher.
also urged government policy makers to use 'more decisive nonmonetary measures' to fully address inflation that were rooted in 'cost-push
factors,' and rice supply in particular.
HE argued that the increase in P.O.L prices would have multiplier affect on trade and industry and economic activities as it would further spur cost-push
inflation; increase cost of transportation of raw material and consumer goods; inflate cost of production etc.