A persistence rise in the prices of inputs will... - JAMB Economics 2023 Question

A persistent rise in the prices of inputs will lead to cost-push inflation. Cost-push inflation occurs when the cost of production increases, leading producers to raise prices to maintain their profit margins.

If the prices of inputs such as labour, raw materials, or energy consistently rise, businesses may pass on these increased costs to consumers in the form of higher prices for goods and services. This is a key characteristic of cost-push inflation.