Rising wages do not automatically “solve” rising prices; they can protect living standards for some workers but may also feed back into inflation if wage growth persistently exceeds productivity and firms pass higher labor costs into prices.
Economists find that the long‑run general price level almost never returns to what it was many decades ago, so the key questions are how fast prices rise, how incomes are distributed, and whether policy keeps inflation low and stable.[1][2][3][4]