What are some reasons cost-push inflation would increase or decrease?

1 Answer
Jul 19, 2015

cost push inflation is caused by the increase of costs incurred by producers within an economy over a period of time.


Increases of costs may result from an increased cost of raw materials, such as metal, oil and if the producer imports raw materials, the increase of tariff costs upon country entry will increase the cost of production..

such increases cause the producer to increase the selling price, since there is an increased cost of production, results in increased inflation rates.