Cost Push Inflation
Inflation caused by rising production costs (materials, labor, energy).
Real World
When global energy prices spiked in 2022 following Russia's invasion of Ukraine, UK manufacturers like Jaguar Land Rover faced sharply higher production costs and were forced to raise vehicle prices.
Exam Focus
Distinguish cost-push from demand-pull clearly — examiners penalise confusion; always state the cause originates from the supply/cost side.
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