The article explores how changes in prices and wages can affect inflation and income distribution. It uses a model where firms set prices based on desired profits, and wages are influenced by inflation, wage pressures, and unemployment. The results show that conflicting claims can lead to steady-state inflation, rather than accelerating inflation. The model also explains the positive relationship between prices and interest rates. Additionally, firms' desired profits are determined through bargaining with workers, with the risk-free interest rate as a reference point.