DEMAND INFLATION

INFLATION that results from an excess of demand, which causes the prices of goods and services to be bid up; the greater the demand, the more aggressive the price increases, and the larger the resulting inflation. Also known as DEMAND PULL INFLATION. See also COST INFLATION.

More On This Topic



Link to This Definition
Did you find this definition of DEMAND INFLATION helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary