How is it that inflation can affect everything EXCEPT wages?
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Wages are affected by inflation. If they weren’t we would all still be making a few hundred bucks a year in the U.S. Wage increases due to inflation will trail behind inflation increases because they are normally reactionary in nature. They happen after inflation reaches certain levels.
To better answer your question though, inflation is a measure of the devaluation of currency. It is accomplished by tracking the cost of a variety of goods and services over time to compare their prices today vs last month or a year ago or ten years ago. It is solely determined based off of the goods and services that are tracked. Wages are not a part of the measure when determining inflation rates.
Increased wages can be a contributing driver of inflation. The more money people make, the more money they can spend, so the more businesses are able to charge.
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