Cost-push inflation is likely to raise when

Assessment: WAEC SSCE - Economics - 2003 (Objective) Subject: Economics

Question 1 Report

Cost-push inflation is likely to raise when
Answer Details
Cost-push inflation refers to a situation where the general price level increases due to an increase in production costs, such as labor or raw materials. When there is an increase in demand for higher wages and it is granted, the cost of production increases. Consequently, companies would increase the prices of goods and services to maintain their profit margins, which results in cost-push inflation. Thus, demand for higher wages being granted is likely to raise cost-push inflation.

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