So if wage increases cause inflation, and inflation causes wage increases, how is it more likely that wage increases cause inflation?

Let’s assume this is the case. Anecdotally [0], I’ve observed (and seen many reports [1]) of the labor market being especially tight in low-margin, low paying industries (e.g. food service, agricultural work, trucking).

Perhaps the costs of goods that are now experiencing inflation (dining out, groceries, shipping) were artificially deflated due to severe underpaying of workers. In order to pay people who work in those industries living wages, prices must rise, since margins are so thin that they can’t absorb higher labor costs.

Pessimistically, I wonder if this will mean many businesses in those industries will close, since demand will suffer. If wages in the restaurant industry rise significantly (without concordant pay raises across the board), many people will no longer be able to afford to eat out.

[0] I recently went to a fast casual Mediterranean place. They recently increased starting pay for workers to $25/hour. A simple pita wrap now costs $15. I went somewhere else.

[1] https://news.ycombinator.com/item?id=28834365

This just tells me spending increases. Nothing about absolute consumption. I don't know about others, but I'm consuming about the same amount of milk I was when I was getting $10/hr vs $35/hr. I might buy more "luxury" products (ice cream, organic milk, etc), but I'm certainly not buying more than I was at $10/hr. My caloric intake is about the same. Perhaps, I'm the odd one out. In my case, most of that extra money just went towards rent and a car.

If food spending increases with income, doesn't that mean that rich people's competition over food is proportional to their wealth?