Cost-push inflation occurs when prices are raised to cover rising production costs, such as wages.

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Cost-push inflation is defined as the situation where prices rise due to an increase in the cost of production inputs, such as labor, energy, or raw materials. Rising wages are one of the main costs that can lead to cost-push inflation. As businesses need to pay workers more, they may pass on some of the cost to consumers by raising prices.

Cost-Push Inflation Occurs When Prices Are Raised to Cover Rising