ʺUK Inflation Surges to 16-year Highʺ
According to the story, ʺHigh inflation in July will also lead to ... ʺfurther rises next January ...ʺ Economists also noted that inflation may get worse because the current data did not yet include
ʺannounced rises in gas and electricity prices.ʺ
The story reflects the concept of

Question

Quizplus · Accepted Answer

The statement suggests that the inflation is being driven by cost-push factors, such as rising energy prices, rather than demand-pull factors. This aligns with the concept of cost-push inflation. The reference to further rises in January also suggests a short-run Phillips curve relationship, as price and wage adjustments are expected to occur within a relatively short time frame. The long-run Phillips curve is not discussed in this brief excerpt.

ʺUK Inflation Surges to 16-Year Highʺ