Inflation is an increase in the price level and wages are a price too. This means, in principle, we should expect wages to increase at the same rate as other p

Inflation is an increase in the price level and wages are a price too. This means, in principle, we should expect wages to increase at the same rate as other prices, all else equal. In practice wages will not always move with inflation perfectly, because again wages are prices and prices are influenced by demand and supply, in addition to changes in the price level.