b) Cost- Push Factors:

(i) Rise in wages: At times rise in wages, if greater than rise in productivity, increases the costs therefore increasing the prices too.

(ii) Increase in indirect taxes also leads to cost side inflation. Taxes such as custom and excise duty raise the cost of production as these taxes are levied on commodities.

(iii) Increase in administered prices such as the MSP (Minimum Support Price) for the food grains, petroleum products etc. also leads to inflation as they have a huge share in budget of common citizens.

(iv) Infrastructural bottlenecks: Infrastructural bottlenecks such as the lack of proper roads, electricity, water etc. raise per unit cost of production. This is one of the prime reasons for inflation in the context of Indian economy.

(v) Fluctuation due to seasonal and cyclical reasons: Owing to events such as failed monsoons there is a drop in agricultural productivity, which inevitably results in inflation at times.