Demand-Pull Inflation
Inflation from high demand exceeding supply ("too much money chasing too few goods").
Real World
During the post-COVID reopening in 2021, UK consumers had accumulated savings and rushed to spend on travel and restaurants simultaneously — demand surged far faster than airlines and hospitality could supply, driving prices sharply higher.
Exam Focus
Distinguish demand-pull from cost-push by identifying whether rising prices originate from consumers spending more or producers facing higher costs.
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