The context of this post is that companies are having difficulty hiring and are having to increase wages. Which is what is being hypothesised to lead to price increases. Which would suggest that wage increases would come first in this instance.
Yes, but they're hesitant to do that because of the impact the wage increases (which then get passed on to consumers) will have on sales. There's this notion that companies could simply double or triple wages with a negligible impact on the bottom line or consumer prices but are just being dicks. Which is not really the case. Margins are just razor-thin. So you get in a sort of Mexican standoff situation. Who's going to blink first, raise wages, and lose sales?
If they can't find staff then the companies don't have much choice but to raise wages. They'll lose more sales if they have to close their business due to lack of staff.
