What is cost-push?

Cost-push is when things get more expensive because it costs more to make them.

Imagine you're making lemonade every day with your favorite lemons. One day, your mom says, "The lemons are now twice as expensive!" That means even though you still make the same amount of lemonade, you have to charge more for it because your costs went up, that's cost-push in action!

Sometimes, things like lemons, or gasoline, or wages, get more expensive. When that happens, people who make products or provide services also have to pay more, so they pass those extra costs on to you, the customer.

It’s like when your favorite toy store raises prices because the factory that makes your toys had to pay more for plastic and paint. You still want the toy, but now it costs more than before. That's cost-push inflation, things get more expensive simply because it costs more to make them.