Cost push inflation is likely to arise when

Cost push inflation is likely to arise when there is a rise in the cost of production. This can occur due to various reasons such as an increase in the cost of labor, raw materials, or energy. When the production cost increases, firms are likely to increase the prices of their goods and services in order to maintain their profit margins. As a result, the general price level of goods and services in the economy increases, leading to inflation. This is because firms are now producing at a higher cost, and they pass on this higher cost to consumers in the form of higher prices. Therefore, cost push inflation occurs when an increase in the cost of production leads to an increase in the general price level of goods and services in the economy.