''Can you explain how people buying groceries inflates the price of groceries?''
you need to know about supply and DEMAND??
as to groceries - I'd guess that a lot of price rise is from fuel at times. Veggies and fruit - from floods -------- and a lot of imported goods ---------- from currency moves.
the demand side varies as people have more or less money to spend. The demand for some goods grows as people have less to spend - but, the demand for other products drops
but, of course - 6 year olds know this ------- maybe ask one when you see one eh?