Prices also go up as the vendor passes taxes on to the final consumer, but that is something different from inflation as far I know.
There are so many "hidden costs" in the form of taxes within the supply chain that the consumer has no clue about. If consumers knew how much more they have to pay for goods, such as groceries or alcohol because of the taxes along the way to the store shelf, they would riot in D.C. Because they know that most of the money isn't going to anything beneficial.
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