Do you think there’s a box you put cash into and it gives you iron ore back?
Nope, there’s a miner who gets paid to get it out of the ground. The miner uses a pickaxe which costs something, sure, but who do you think made the pickaxe? It was a worker somewhere who got paid to manufacture it.
Money doesn’t disappear, it goes into someone’s pocket eventually, either through wages or through corporate income.
If costs are going up it means that someone somewhere is getting richer, meaning he has more money to spend, meaning things get more expensive.