How does demand pull inflation differ from cost push inflation

Demand-pull inflation is the result of consumer behavior. On the other hand, cost-push inflation is a result of the behavior of producers.

Explanation:

Demand-pull inflation occurs when the aggregate demand for a product becomes greater than the aggregate supply. As a result, inflation related to this product increases as unemployment and GDP fall. As a result, consumers have more money and are willing to establish greater demand for a product, however, producers of that product are unable to keep up with this demand and the supply turns out to be small.

Cost-push inflation, on the other hand, occurs as a result of increased production costs for a product. In this situation, the demand may even remain stable, but producers end up having to increase the unit price of the product, so that its sale covers production costs.

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