Our current problem are however prices rising too much and that could be fueled even further by higher salaries.
Transferred to our example, the following problem arises:
Assuming the television manufacturer wants to compensate for the rising prices with higher wages, it has to take in more in order not to make less profit. Therefore, he raises the prices to cover the additional costs.
The consequence: The inflation continues to pick up speed prices are increasing always on. This effect is called wage-price spiral. There is also a risk of such a thing in the current situation, experts say: