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Demand-pull inflation

Inflation which is created and sustained by an excess of aggregate demand over the total flow of goods and services which can be produced by a fully employed economy. If the sum of demands for goods and services by consumers, government and corporations exceeds available supply, prices will be bid up in response to this disequilibrium. In principle, the price increases should eliminate the excess demand and restore equilibrium.

Reference: The Penguin Dictionary of Economics, 3rd edt.