For example, while general inflation (e.g., consumer price index) in the US was less than 5% in the 2003-2007 time period, steel prices increased (escalated) by over 50% because of supply-demand imbalance. Cost escalation may contribute to a project cost overrun but it is not synonymous with it.
While general inflation (e.g., consumer price index) in the US was low during the 2003-2007 period, steel prices increased by over 50% due to supply and demand imbalances. Cost escalation can contribute to project cost overruns but it's not synonymous with it.