Earlier quoted context omitted.
Sure but it would be worse. You see this all the time when the minimum wage is increased by say 10% then there is a general inflation of 1%. General inflation lags wage increases although at a reduced effect.
That’s not what the empirical evidence suggests (though it’s a big topic of study). It’s closer to 0.4% for every 10% increase and the inflation happens almost immediately. https://research.upjohn.org/up_workingpapers/260/
But I'm still really not sure what you're trying to argue. My claim is that a X% wage increase will be followed by an This isn't even rocket science. For any product you'll spend say $10 on labor, $15 on marketing, $5 on parts for a total of $30. If your labor costs goes up to say $20 then the total cost is $40 and one could expect the price that the 200% increase in wages lead to a 25% increase in the products price (inflation).
> In the base specification (p. 162), which included only monthly and yearly controls, the cumulative wage-price elasticity from three months before up to three months after a minimum wage hike was estimated at about 0.07, meaning that a 10 percent increase in the minimum wage is associated with a 0.7 percent increase in FAFH prices. Aaronson, French, and MacDonald (2008) used microlevel restaurant price data for the period 1995–1997, during which two changes to the federal minimum wage were implemented, to generate a wage-price elasticity of, again, about 0.07. 3 Though the empirical literature is somewhat limited outside of these two formative works (see Lemos [2008] for a review), other studies have found similar results in other countries and other cases.