"UK Inflation Surges to 16-year High" According to the story, "High inflation in July will also lead to ... "further rises next January ..." Economists also noted that inflation may get worse because the current data did not yet include "announced rises in gas and electricity prices."
Www)ft.com, 8/12/2008
The story reflects the concept of
A) cost-push inflation.
B) the short-run Phillips curve.
C) demand-pull inflation.
D) the long-run Phillips curve.

Question

Quizplus · Accepted Answer

The story reflects cost-push inflation, as it mentions inflation rising due to increases in costs such as gas and electricity prices, which are external factors pushing the overall price levels higher.

"UK Inflation Surges to 16-Year High" According to the Story