How does cost-push inflation typically affect economic growth in an economy?

Cost-push inflation happens when the costs of production for goods and services rise, which can lead to higher prices for consumers. This type of inflation can slow down economic growth because when prices increase, people may buy less since their money doesn’t stretch as far. For example, if the cost of oil rises sharply, transportation and production costs for many goods also increase, causing businesses to raise their prices. As consumers spend less, businesses may earn lower profits and could cut back on hiring or investments, which further slows down economic activity. Overall, while some inflation can be normal in a growing economy, cost-push inflation can create challenges that hinder growth.