wage-price spiral

wage-price spiral definition - business

wage-price spiral

The interrelation between wages and prices such that an increase in one results in an increase in the other, which results in another round of increases. For example, workers see rising consumer prices and demand an increase in wages that causes their employers to raise prices because of their higher labor costs.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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