When an increase in oil prices results in the overall rise in the price of goods then cost-push inflation is likely to occur. Thus the correct answer is B.
What is inflation?
When the prices of goods and services increase over the duration of time affecting the purchasing capacity of an individual is referred to as inflation.
When prices of goods and services increase as a result of growing manufacturing and raw material costs, this is referred to as cost-push inflation. Supply-side variables like rising wages and costs create cost-push inflation.
Therefore, option B cost-push inflation is the appropriate answer.
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