question archive Pakistan: Is it? Cost-Push Inflation With CPI already spiking 11
Pakistan: Is it? Cost-Push Inflation With CPI already spiking 11
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Pakistan: Is it? Cost-Push Inflation With CPI already spiking 11.8 percent for the first ten months of the fiscal year, the average CPI inflation for the same period last year stood at 22.35 percent. Some economists insist the current bout of inflationary pressures is spawned by increasing prices of? fuel, food, raw materials, transportation, construction materials, elimination of energy subsidies, etc as indicated by the spike in the wholesale price index? (WPI), which rose 21.99 per cent in April from a year earlier.
Read the news? clip, then answer the following question.
Pakistan is experiencing? ______ inflation.
A.?cost-pull
B.?demand-push
C.?demand-pull
D.?cost-push
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Answer:
Pakistan is experiencing cost push inflation because of the rise in prices of inputs like fuel, raw materials, transportation and construction material. Thus the producers are facing risning input costs which they are transferring to the consumers and so the inflation is due to cost push inflation.
