Cost Push Inflation
Inflation caused by rising production costs (materials, labor, energy).
Real World
Following Russia's invasion of Ukraine in 2022, energy and wheat prices surged globally, forcing food manufacturers like Warburtons to raise bread prices to protect margins — a textbook cost-push inflation scenario.
Exam Focus
Distinguish cost-push from demand-pull by identifying the supply-side trigger; examiners deduct marks for conflating the two types.
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