I don’t understand why shortage of product causes inflation across the board. For example, eggs are hard to get, but everything goes up in price due to the shortage. I can understand that low supply of eggs will cause the price of eggs to go up, by why does it affect all the other prices of food too?
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OK say I am a delivery driver who has bacon and eggs every morning before doing my deliveries, if eggs go up in price that means I have to pay more for bacon and eggs in the morning so I am going to want more money in wages to pay for me doing deliveries. That increase in delivery cost now has to be paid by all the companies wanting stuff delivered.
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