Inflation resulting from rising demand due to economic growth is referred to as what?

The term that describes inflation resulting from rising demand due to economic growth is demand pull inflation. This type of inflation occurs when the overall demand for goods and services in an economy outpaces their supply. When an economy experiences growth, it typically leads to increased consumer confidence, higher spending, and more investment, all of which contribute to this heightened demand.

As demand rises, businesses may struggle to keep up, leading to upward pressure on prices. This phenomenon illustrates how demand pull inflation is closely linked with periods of economic expansion, where consumers and businesses alike have the financial means and willingness to purchase more.

In contrast, cost push inflation is driven by an increase in the costs of production, which raises prices independently of demand levels. Structural inflation deals more with long-term changes in the economy that affect supply and demand in specific industries or markets. Cyclical inflation refers to fluctuations tied to the economic cycle but does not specifically focus on the immediate impact of rising demand from economic growth as demand pull inflation does.