What is cost push inflation?
Cost push inflation is the result of an increase in the price of the factors of production e.g. labour, raw materials. For example, an increase in the price of oil will increase the price of most raw materials. Firms will have to increase their prices to sustain the same level of profits. This increase in price across the economy is cost push inflation.
NO
Related Economics A Level answers
All answers ▸What is the best market structure?
Which is preferable inflation of deflation? (25 marker)
What is the impact of a rise in national minimum wage on the labour market?
Evaluate policies which a UK government could use to control the activities of oligopolists.