2. But if wages and salaries are to be increased by the private sector, the cost of doing business would have to increase as well. To cover this increase, prices of products must be increased. This will mean that the consumers will have to pay higher prices for whatever they purchase. There would be, by definition, inflation.
3. The increase in prices of goods and services should cover the higher wages and salaries and the profit margins from the business. But this will not be all. The cost of transport, fuel and raw materials would all increase as these businesses will also experience increased overhead costs as they too will have to increase wages etc. So the increase in product prices must also cover these costs.