Cost- push inflation can occur as a result of which of the following?
(i) Higher import prices
(ii) Higher domestic wage rates
(iii) Higher consumer spending

Question

Quizplus · Accepted Answer

Cost-push inflation occurs when the costs of production increase, leading to higher prices for consumers. This can happen due to higher import prices (making imported goods or raw materials more expensive) and higher domestic wage rates (increasing production costs). Higher consumer spending, however, typically leads to demand-pull inflation, not cost-push inflation.

Cost- Push Inflation Can Occur as a Result of Which