Definition

Noun An upward change in the amount of money required to pay for something; a rise in price or expense.

Usage

This term is used to describe a situation where the price of goods, services, or the overall expense of an operation goes up. It is a formal or business term often found in economic reports, financial discussions, and negotiations.

Examples

• The main challenge for the project was the unexpected cost increase in raw materials.
• Due to inflation, we are seeing a steady cost increase across the entire supply chain.
• The union's primary demand was to offset the cost increase in living expenses.

Advanced Usage

• To absorb a cost increase: To pay for the higher costs without passing them on to the customer, often reducing profit margins.
  • The company decided to absorb the cost increase to remain competitive.
• To trigger/prompt a cost increase: To be the direct cause of prices rising.
  • The new environmental regulations could trigger a significant cost increase for manufacturers.

Variants and Related Words

• Price increase: A very close synonym, often used interchangeably, though "price increase" more specifically refers to the amount charged to a buyer, while "cost increase" can refer to expenses incurred by a producer or consumer.
• Rate increase: Often used when referring to the cost of utilities, interest, insurance, or services charged per unit (e.g., per hour, per kilowatt).
• Hike (noun, informal): A sharp or sudden increase in cost or price.
  • Customers were unhappy about the latest price hike.

Synonyms

• Rise in cost
• Price rise
• Upsurge in expenses
• Escalation of costs

Antonyms

• Cost reduction
• Price cut
• Decrease in cost
• Cost saving

Related Phrases

• To pass on a cost increase: To charge customers more to compensate for higher expenses.
  • The retailer had to pass the cost increase on to consumers.
• To mitigate a cost increase: To take action to lessen the impact or size of rising costs.
  • The manager proposed several strategies to mitigate the forecasted cost increase.

Noun

1. an increase in cost
   • they asked for a 10% rise in rates