Cost-push inflation occurs when the overall price levels rise due to increases in the costs of production. This can happen when the prices of essential inputs, such as raw materials or labor, increase. As businesses face higher costs, they often pass these expenses onto consumers in the form of higher prices for goods and services. Factors contributing to cost-push inflation can include supply chain disruptions, natural disasters, or government regulations that increase production costs. This type of inflation can lead to reduced economic growth, as consumers may cut back on spending due to higher prices, creating a challenging economic environment.