Which type of inflation is associated with rising prices of imported goods?

The correct answer is associated with the concept of imported inflation, which specifically refers to the increase in prices that occurs due to higher costs of imported goods. When the prices of goods from other countries rise, typically as a result of currency depreciation or increased production costs abroad, this can lead to higher overall price levels domestically, since consumers and businesses rely on these imports. Thus, when the prices of imported goods increase, it directly affects the domestic inflation rate.

In contrast, cost-push inflation refers to when overall prices rise due to an increase in the costs of production within the economy, not specifically tied to imports. Demand-pull inflation occurs when overall demand for goods and services exceeds supply, driving prices up. Monetary inflation generally refers to the increase in the money supply that may lead to inflation, but it does not specifically relate to the prices of imported goods. Understanding these distinctions highlights why imported inflation is the correct answer, focusing on the specific impact of importing goods on price levels.