Causes of cost push inflation

Causes of cost push inflation

  • Rising costs (prices) of fuel/ power/ energy.
  • Depreciation / devaluation of the local currency against foreign currencies.
  • Rising costs (prices) of imported in puts / raw materials.
  • Rising wages / salaries.
  • Rising tax levels.
  • Increase in transport costs.
  • Rising cost of advertising/ sales promotion.
  • Increasing costs of borrowing / interest rate.
  • Rising costs of rent /storage facilities.
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