How is a doubling in prices offset by a 20% increase in wages? And has there every been a time when high inflation was offset by and even higher increase in wages? Wages never keep up and inflation always hurts the poor. A rich person couldn't care less if milk's price doubles. They'll drink just as much milk. A poor person who's banking on that yearly bonus/bump in pay to pay for all the next year's inflating milk, is going to have to do without some milk.