A persistence rise in the prices of inputs will lead to

Source: JAMB · 2023

A persistence rise in the prices of inputs will lead to

  1. hyperinflation
  2. stagflation
  3. cost push inflation ✓
  4. demand pull inflation
Explanation

When input prices such as wages, fuel and raw materials keep rising, producers’ costs go up. They pass this on through higher prices. This is cost push inflation.

Demand pull inflation comes from too much spending, not higher costs.

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