Now imagine every employee in your city, regardless of industry, got a 7% inflation raise. This would then push prices up even more. Pushing inflation up even more. Pushing even more inflation raises next year.
Rinse. Repeat. It's a never ending loop of wage inflation
The only way inflation stops, or even deflation starts, is if someone "gives up" on inflation adjustments
Rinse. Repeat. It's a never ending loop of wage inflation
The only way inflation stops, or even deflation starts, is if someone "gives up" on inflation adjustments