Which of the following causes cost-push inflation?
A. Higher consumer demand
B. Lower production costs
C. Increase in input prices like oil or labor
D. Decrease in money supply
Answer (1)
The correct answer is letter C. Cost-push inflation is triggered when the cost of production rises, such as oil prices going up or wage increases. In the Philippines, rising fuel and agricultural import costs led to higher prices of goods in 2022—even when demand remained constant.
