Understanding Cost-Push Inflation: Causes, Impacts, and Economic Implications

Introduction Cost-push inflation is a critical economic phenomenon characterized by rising prices due to increased costs of production rather than increased demand for goods and services. This report aims to explore the underlying causes of cost-push inflation, its impacts on the economy, and the broader economic implications it entails. By examining various factors contributing to cost-push inflation, such as wage increases, raw material costs, and supply chain disruptions, we can better understand how this type of inflation affects consumers, businesses, and policymakers. The purpose of this report is to provide a comprehensive analysis of cost-push inflation to identify its effects on economic stability and growth.

Causes of Cost-Push Inflation Cost-push inflation arises from various factors that increase production costs for businesses, ultimately leading to higher prices for consumers. One of the primary causes is the rising cost of raw materials. Changes in commodity prices, particu