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What is wage push inflation?

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Question ajoutée par Amjed Mehboob , G.M -(Currently Job Seeking ) , Advance Education centre
Date de publication: 2016/04/23
Hany Sewilam Abdel Hamid
par Hany Sewilam Abdel Hamid , Director of Sales and Marketing , Creative Sense

Dear Amjed,

 

Wage push inflation is a general increase in the cost of goods that is preceded by and results from an increase in wages. In order 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 negative effect on the wage increase, and eventually, higher wages will be again needed to compensate for the increased prices for consumer goods.

 

Regards,

 

Hany Sewilam AbdelHamid

Head of Business Development | Sales & Marketing

Entrepreneurship Coach & Consultant

Digital & Social Marketing Certified Expert