Let’s say you’re a producer of goods. Now let’s say the production costs of goods go up, because of something like increased Fed interest rates or, say, reckless tariffs. The cost you charge for your goods goes up because Profit is God. But now all your employees have to pay more for their food and other goods, so they aren’t as happy with their wages. The buying power of their dollar has gone down. So now in order to retain employees, your labor costs go up. So the cost of goods goes up. Lather, rinse, repeat.