Cost-push inflation

Cost-push inflation is when prices go up because the cost of things needed to make or provide goods and services goes up. For example, if the ingredients a baker needs to bake bread become more expensive, then the baker will have to charge more for the bread so they can still make a profit. Since bread is something people buy often, they will see the prices going up and the price of bread overall is said to have “inflated”. Cost-push inflation happens when the costs of many different things increase, so many prices go up.