What is the meaning of price escalation?

Price escalation is when prices increase, often as a result of inflation, increased demand for goods or services, or due to other economic factors. Price escalation typically occurs over a period of time and often reflects larger macroenvironmental forces at play in the economy. Price escalation can affect many sectors, from groceries to housing, and generally requires businesses to adjust prices accordingly in order to remain competitive. In some cases, price escalation can also be triggered by specific events such as wars, natural disasters, labor disputes and currency fluctuation.