Inflation caused by a rise in oil prices is an example of

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the prices of production inputs increase, leading to an increase in the overall price level of goods and services. A rise in oil prices is a classic example of cost-push inflation, as oil is a critical input for many industries and its price increase can lead to higher costs for transportation, manufacturing, and production of goods, which are then passed on to consumers in the form of higher prices.

Inflation Caused by a Rise in Oil Prices Is an Example