Question Details

	Username: LuckyWoman Rating: Asked to: Talitha Taslim Date Created: 01 May 2019
Category	28
Tag	Financial
Question	What is Wage Push Inflation?

Advice from Guru

Hello LuckyWoman,

Wage push inflation is an overall rise in the cost of goods that results from a rise in wages. To maintain corporate profits after an increase in wages, employers must increase the prices they charge for the goods and services they provide. The overall increased cost of goods and services has a circular effect on the wage increase; eventually, as goods and services in the market overall increase, higher wages will be needed to compensate for the increased prices of consumer goods.

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