kustannussiirtymistä

Kustannussiirtymä is a Finnish term that translates to "cost shifting" or "cost pass-through" in English. It refers to a phenomenon where an increase in the cost of production for a company is transferred to the consumer in the form of higher prices for goods or services. This can occur across various industries and economic sectors.

Several factors can trigger a kustannussiirtymä. These often include rising input costs such as raw materials, energy, labor, or transportation. For example, if the price of oil increases significantly, this can lead to higher fuel costs for businesses, which they may then pass on to consumers through increased prices for delivered goods or services that rely on transportation. Similarly, an increase in the cost of essential raw materials can force manufacturers to raise their product prices.

The ability of a company to successfully implement a kustannussiirtymä depends on several market conditions. If the demand for the product or service is inelastic, meaning consumers are not very sensitive to price changes, then the company has a greater chance of passing on the increased costs without a significant drop in sales. Conversely, in highly competitive markets or for products with many substitutes, a company might find it difficult to raise prices, as consumers could switch to cheaper alternatives. This can lead to reduced profit margins for the business.

Kustannussiirtymä can have broader economic implications, potentially contributing to inflation if widespread across multiple sectors. It is a concept frequently discussed in economics, business strategy, and public policy debates concerning market dynamics and consumer welfare.