A persistent rise in the prices of inputs will lead to
Answer Details
A persistent rise in the prices of inputs will lead to cost-push inflation. When the cost of producing goods and services increases, producers will increase the prices of those goods and services to maintain their profit margins. This, in turn, can lead to an overall rise in the general price level of the economy, which is referred to as inflation. Cost-push inflation occurs when the increase in prices is caused by an increase in the cost of production, as opposed to an increase in demand for goods and services (demand-pull inflation).