 Thus, capsaicin does not actually cause a chemical burn, or indeed any direct tissue damage at all, when chili peppers are the source of exposure.The inflammation resulting from exposure to capsaicin is believed to be the result of the body's reaction to nerve excitement.For example, the mode of action of capsaicin in inducing bronchoconstriction is thought to involve stimulation of C fibers culminating in the release of neuropeptides.