What type of inflation results from persistent excess demand over supply?

Demand pull inflation arises when there is an increase in demand for goods and services that exceeds the available supply. This condition typically leads to higher prices because businesses struggle to keep up with the demand, leading them to raise prices. Factors that can contribute to this type of inflation include increased consumer spending, government expenditure, or investment.

In contrast, cost push inflation occurs when the production cost of goods rises, thereby passing those costs onto consumers through higher prices, regardless of demand levels. Fiscal inflation refers to inflation that occurs due to government spending that does not correspond to overall economic output. Import cost factors relate to the impact of rising costs of imported goods and services but do not address the overarching issue of demand exceeding supply.

Thus, the identification of demand pull inflation directly correlates with the scenario of persistent excess demand driving prices upward, making it the correct answer.