Inflation is a runaway train, but it's easy to understand it. I won't try to speak for other parts of the country, but pre-COVID where I live fast food and retail jobs paid like $8 per hour. They pay more than twice that now just 5 years later.
Now, don't misinterpret what I'm trying to say. No one should be making only $8 per hour for any job. I'm just saying that has a direct impact on pricing of goods in a couple of different ways. First the businesses have to raise their prices to offset those increased labor costs and second those working those low wage jobs now had more money to put into circulation... and the poorest paid tend to spend 100% of what they make (because they have to) unlike the higher paid who tend to save a higher portion of their earnings.
From the pricing of goods side, businesses are always going to maximize their earnings by pricing their goods at that most beneficial equilibrium profitability point, that's just good business. There's a sweet spot to determine the best profit level based upon quantity sold and profit per item. The goal is always to produce the right quantity and sell at the right price to maximize profits. Even if they produce too much or too little, or price too high or too low then they lose out on profits for their shareholders so they have huge incentive to get that right. Earlier in my career I worked in a market research position for a Fortune 500 financial services company and this was a big part of my job while I was there.