...a force that operates year-in and year-out, whenever we are at high employment, to push up prices. It's a price creep, not a price gallop; but the bad thing about it is that, instead of setting in only after you have reached overfull employment, the suspicion is dawning that it may be a problem that plagues us even when we haven't arrived at a satisfactory level of employment.describing cost-push inflation

Summary

This quote refers to the concept of cost-push inflation, which is a gradual increase in prices caused by rising costs of production. It emphasizes that this force operates consistently over time, regardless of whether the economy is at full employment or not. Rather than a sudden surge in prices, it describes a creeping effect that persists even when the economy is not performing optimally. The concern expressed is that cost-push inflation may pose challenges, hindering progress towards achieving desirable levels of employment.

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