Definitions for "demand-pull inflation"
The price for goods and services increases due to excessive demand meeting inadequate...
A general increase in prices that occurs when demand exceeds supply.
If there is an excess level of demand in the economy, this will tend to cause prices to rise. This type of inflation is called demand-pull inflation and is argued by Keynesians to be one of the main causes of inflation. As demand increases from AD1 to AD4 there is increasing inflationary pressure on prices. This is demand-pull inflation - "too much money chasing too few goods."
Occurs when producers raise process in response to strong consumer demand.