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Fact 28.2.1 High Food and Energy Prices Here to Stay
On top of rising energy prices, a severe drought, bad harvests, and a poor monsoon season in Asia have sent grain prices soaring. Globally, this is the third major food price shock in five years.
Source: The Telegraph, August 29, 2012
-Consider Fact 28.2.1. The news clip is describing ________ inflation.
A)cost-push
B)cost-pull
C)demand-pull
D)demand-push
E)expected

Question

Quizplus · Accepted Answer

The news clip describes inflation caused by rising food and energy prices, which are factors that increase the cost of production for goods and services. This is known as cost-push inflation.

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