Concept:Inflation caused by an increase in the cost of production is called cost-push inflation.
Explanation:Production requires inputs such as raw materials, labour, and energy.
When the prices of these inputs rise, producers have to spend more to produce the same amount of goods.
To protect their profit margins, producers increase the selling prices of their products.
When this happens across the economy, the general price level rises.
Because the rise in prices originates from higher input costs, it is referred to as cost-push inflation.
This differs from demand-pull inflation, which is caused by excess aggregate demand.
Answer:B. cost-push inflation