Cost-push inflation is caused by an increase in factor prices. When the prices of production factors such as labor, raw materials, and energy increase, it results in an increase in the cost of production. As a result, firms must charge higher prices to maintain their profit margins. This, in turn, leads to an increase in the general price level in the economy. Cost-push inflation can be caused by several factors such as an increase in wages, an increase in the price of raw materials, an increase in taxes, and an increase in the price of imported goods. It can have a negative impact on the economy, as it leads to a decrease in purchasing power and a decrease in the overall economic activity. Growth of government expenditure, increase in money supply, and hoarding may cause inflation, but they do not cause cost-push inflation.