Cost-pull inflation constitutes a macroeconomic phenomenon wherein the general price level within an economy experiences an upward trajectory primarily as a consequence of escalating production costs across various industries. These cost surges may originate from a multitude of sources, including but not limited to significant increases in labor wages due to collective bargaining agreements, heightened prices of essential raw materials driven by supply shortages or geopolitical tensions, disruptions within intricate global supply chains that hinder the efficient movement of goods, or the imposition of higher taxation and regulatory burdens that elevate operational expenditures for firms. In response to these mounting cost pressures, businesses, seeking to maintain profit margins and financial viability, frequently transfer the burden onto end consumers through upward price adjustments across goods and services, thereby contributing to inflationary trends that permeate the broader economic landscape.
