Cost push inflation is created when businesses decide to spend billions on new capital goods.
What is inflation?
This is the term that is used to refer to the fact that there is an increase in the general price level in a given economy. The period of inflation is usually characterized by a rise in the prices of goods and services with a lot of these being too high for the consumers to purchase.
The cost push is caused when the cost of raw materials have become too much for the businesses to obtain. Hence the Cost push inflation is created when businesses decide to spend billions on new capital goods.
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