As a functional medicine practitioner, I see a wide range of health problems that all stem from chronic inflammation. And while acute inflammation is a natural and healthy response to help fight off pathogenic bacteria and infections, long-term chronic inflammation that doesn’t subside when the threat is gone can contribute to everything from autoimmune conditions to cancer.
Processed foods are usually packed with sugar additives and other undesirable ingredients that improve the taste but negatively affect your health. Even if "sugar" isn't listed on the label of ingredients, chances are it contains a substitute in some form. Whether it's sucrose, dextrose, high-fructose corn syrup or something similar, these ingredients can have the same (or worse) effects as sugar.
When you eat a meal, your body spends a few hours processing that food, burning what it can from what you just consumed. Because it has all of this readily-available, easy to burn energy (thanks to the food you ate), your body will choose to use that as energy rather than the fat you have stored. This is especially true if you just consumed carbohydrates/sugar, as your body prefers to burn sugar as energy before any other source.