What type of inflation results from rising costs of production?

The phenomenon described in the question is best characterized by cost-push inflation, which occurs when the costs of production increase, leading businesses to raise their prices in order to maintain profit margins.

Cost-push inflation arises from various factors, such as increased costs of raw materials, rising wages, or supply chain disruptions. When producers face higher costs, they often pass these costs onto consumers in the form of higher prices, contributing to overall inflation in the economy.

In contrast, demand-pull inflation results from an increase in consumer demand that outpaces supply, leading to higher prices. Built-in inflation, often related to wage demands that are institutionally linked to inflation rates, also does not reflect rising production costs directly. Hyperinflation refers to an extremely high and typically accelerating inflation rate, which is often the result of various economic instability factors rather than simply rising costs of production.

Thus, the type of inflation that specifically results from rising production costs aligns with the concepts associated with cost-push inflation, making it the most appropriate answer in this context.