Demand Pull Inflation and Cost Push Inflation | Inflation (Part-2) | DU | SOL | NCWEB | Regular

Hello Students!
This Video is Part-2 of Inflation.
In this video you will learn about following topics :

1. Demand Pull Inflation
Demand pull Inflation arises when there is an excess of demand for goods over their supply. When there is persistent increase in demand and supply does not increase proportionately, then price tends to rise.
 
 - Factors causing Demand Pull Inflation
(i) Black money
(ii) Increase in population
(iii) Increase in Money supply
(iv) Increase in disposable income of consumer
(v) Increase in public expenditure

   - Diagram with explanation

2. Cost Push Inflation
Cost push Inflation occurs when rise in price is due to rise in the cost of production.
In this type of inflation, demand remains constant and supply factor plays a major role.

   - Factors causing Cost Push Inflation
(i) High wage rates
(ii) Higher profit margin
(iii) Higher taxes
(iv) Fall in the availability of bsic inputs
(v) Administered higher prices of inputs

   - Diagram with explanation

Link of Part-1 Inflation👇
Types of Inflation | Inflation (Part-...

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