Labor is one type of limited resource that affects the cost of goods. Other resources, such as land, minerals, water, intellectual property also affect the cost of goods.FWIW inflation is seldom caused by rising wages.
More typically wages rise after prices inflate.
The cost of any good is the sum of wages paid to create it. That is why inflation is ALWAYS caused by rising wages.
Additionally, market dynamics affect the price, such as the law and set aside locations for making purchases.
Last edited: