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Your question contains the answer in it as well. You have mentioned the term “cost push’ inflation and this type of inflation, as the name suggests is caused by an increase in the prices of the raw materials that drives up the prices of the final goods. Whenever we say cost push inflation, it means that it has been caused by an increase in the prices of raw materials and same is the case in the present day economy. A major raw material to the industry is petrol and as we saw, the petrol prices were extremely high in the past year going as high as 140 dollars a barrel. In addition to this, the commodity market for the wheat etc also saw similar trends. The price hikes in the energy prices also added to this raw material price increase trend. The reason there fore is that the high raw material prices, contributed to the increase in the production costs and lead to inflation.
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