Cost push inflation is caused by a

  • A rise in the cost of production
  • B decrease in the transportation cost
  • C rise in demand for goods
  • D decrease in the cost of production
waec 2011economics

The correct answer is A. rise in the cost of production

Cost-push inflation occurs when overall prices increase due to increases in the cost of wages and raw materials. An increase in the cost of wages and raw materials means high cost of production. This will cause the prices of goods to rise

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