In the field of economics, the traditional view is that rising wages will inevitably lead to inflation. Former Governor of the Bank of Canada, Stephen Poloz, believes that multiple factors can affect the relationship between wages and inflation. One of these factors is the growth of productivity. If enterprises can produce more goods and services with the same amount of labor, they can absorb higher labor costs without raising prices. This situation may lead to wage increases, but it will not lead to inflation. In addition, supply and demand dynamics also play an important role. In a tight labor market, companies may need to increase wages to attract workers. However, if consumer demand is weak, companies may not be able to pass on higher labor costs to consumers by raising prices. Therefore, in this situation, wage increases may not lead to inflation.