Which statement describes cost push inflation?

Cost-push inflation occurs when the overall price levels rise due to increases in the cost of production. This can happen due to factors such as rising wages, increased prices for raw materials, or higher overhead costs for businesses. When these production costs go up, companies may pass these higher costs onto consumers in the form of higher prices, leading to inflation.

Thus, the correct answer highlights the nature of this type of inflation as being primarily linked to the various elements that increase the costs for producers rather than an increase in demand for goods and services. In this case, production costs exert pressure on prices, creating a ripple effect across the economy.

The other potential answers refer to different inflation dynamics. Some options discuss demand-driven inflation, global market influences, and currency fluctuations, which are related to other inflationary scenarios but do not define cost-push inflation specifically.