<p>While cost-push inflation makes intuitive sense for explaining the inflation uptrend in recent years: disruptions to the supply chain and volatile energy markets lead companies to pass on price hikes downstream. Demand for goods is said to be of marginal consequence in this situation.</p>
<p>However, what we are seeing with rising core inflation might be flagged as an anomaly under this framework. If the amount of money is not a meaningful component, then the majority of goods and services would see static or falling prices. But again, rising core inflation suggests otherwise.</p>
<h2>Question</h2>
<p>Is rising core inflation alone enough to cast empirical doubt on the cost-push framework as responsible for a large portion of US inflation over the period 2021-2022? Why/why not?</p>

CC BY-SA 4.0
2022-09-20T08:00:21.430Z
Question is overly broad: Are you asking about cost push inflation as a major/sole reason for the current US inflation or the mechanism of cost push inflation being able to contribute to inflation at all?
Giskard
CC BY-SA 4.0
2022-09-20T08:52:38.640Z
@Giskard Yeah, the former, updated for clarity.
Arash Howaida
CC BY-SA 4.0
2022-09-20T08:53:17.627Z
Although the second part might be more interesting, never thought about it that way. Will see how this goes first.
Arash Howaida
CC BY-SA 4.0
2022-09-20T09:04:18.650Z
Okay, but can you please quote in your Q here the exact claim that you want to know is debunked or not. E.g., "cost-push inflation is responsible for 90% of the inflation in the US 2021-2022" or something like this.
Giskard
<macroeconomics><inflation><united-states>
United States - Is it the case that cost-push inflation is debunked?
Arash Howaida
# United States - Is it the case that cost-push inflation is debunked?

(Asked by: username_0 on 2022-09-20)

While cost-push inflation makes intuitive sense for explaining the inflation uptrend in recent years: disruptions to the supply chain and volatile energy markets lead companies to pass on price hikes downstream. Demand for goods is said to be of marginal consequence in this situation.

However, what we are seeing with rising core inflation might be flagged as an anomaly under this framework. If the amount of money is not a meaningful component, then the majority of goods and services would see static or falling prices. But again, rising core inflation suggests otherwise.

## Question

Is rising core inflation alone enough to cast empirical doubt on the cost-push framework as responsible for a large portion of US inflation over the period 2021-2022? Why/why not?

**Tags:** macroeconomics, inflation, united-states
> **Comments:**
> **username_1**: Question is overly broad: Are you asking about cost push inflation as a major/sole reason for the current US inflation or the mechanism of cost push inflation being able to contribute to inflation at all?  
> **username_0**: @Giskard Yeah, the former, updated for clarity.  
> **username_0**: Although the second part might be more interesting, never thought about it that way. Will see how this goes first.  
> **username_1**: Okay, but can you please quote in your Q here the exact claim that you want to know is debunked or not. E.g., "cost-push inflation is responsible for 90% of the inflation in the US 2021-2022" or something like this.  

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## 0 answers

