More money in the hands of investors with the looming threat of increased inflation would lead to investors demanding higher rates of return for their investments at each step in the supply chain. And when the system is flooded with money, you can also expect companies to expand while the cost to borrow is cheap and for new entrants entering and attempting to grab a market share.
More companies or expanding companies vying for more raw material / services leads to higher demand from suppliers (hence the bidding GP mentioned).
There are likely other mechanisms in play too, and probably much simpler ones than this, but this was the first mechanism to cross my mind when seeing your question.
generally, prices are rising, which means workers will demand more money to cover their increased living costs or find an employer who will. (and if house prices are going up, rents are probably doing so as well, particularly as things like REITs have become a whole category of investment products.)
the overall effects can have pretty subtle origins but can ripple through gradually. the worst part about this is, if it happens long enough, inflation can more or less become a sustained expectation and grab a life of its own.
Where in the production chain is the item whose scarcity triggers a bidding war?