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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
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