Inflation is always something to worry about. It warps the market and makes economic calculation more difficult. Prices really do rise absolutely because a portion of capital is caused by induced miscalculation to be misallocated. Real wages fall in an inflation because labor is the last price to rise. Inflation is government fraud in that it is always embarked upon in order to welsh on the government debt to some extent. Inflation is and is only the creation by the government of money at a greater rate than the market can absorb while keeping the value of the maoney stable. This was explicit in W's announcement of "devaluation" way back in his first year. For a few years the European and Asian banks soaked up most of the extra dollars, thus, in effect, importing American inflation. Now they have a lot of extra dollars for which they have traded real value and the value of their dollar holdings is no greater than it was before they started to increase it. They are tapped out now, unable to act as the dollar landfill for America any more. If they "dumped" the dollars they hold now, as some economic journalists loudly fear, it would cause spectular general price rises in our economy a la Jimmah Cottuh's years. But they won't do that because it would trash their own economies as their "hard" reserves suddenly turn to Charmin.
So why are wage increases portrayed as a cause of inflation?
I don't know if I agree with your entire economic theory, but the government is the cause of inflation, not the private sector, which always gets the blame and the punishment.