How is it that inflation can affect everything EXCEPT wages?
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I think a lot of people have a wrong intuition about inflation. It’s not a dial you can turn or a number you can fill in on your taxes. It is simply the price change on “goods” over time. And often goods don’t all change at the same time, or at all.
It is usually calculated using by just averaging across a wide range of products (a virtual shopping basket, so to speak) and noting the price difference over time.
This means that if gas (which is part of the basket) gets more expensive due to a war, inflation goes up. If there has been a good harvest, price and inflation go down.
Now of course a lot of institutions follow these prices and change their policies accordingly, affecting everything in our daily lives. This way it trickles down and feeds back into the economy.
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