WAEC - Economics (2011 - No. 40)
Cost push inflation is caused by a
rise in the cost of production
decrease in the transportation cost
rise in demand for goods
decrease in the cost of production
Explicaţie
Cost-push inflation occurs when overall prices increase due to increases in the cost of wages and raw materials. An increase in the cost of wages and raw materials means high cost of production. This will cause the prices of goods to rise