Drag the image or object where you would like it to appear in the text. Make sure the image/object is selected, not the text. (You can select multiple images/objects at once, if you wish.)
Choose Window from top pane and select Text Wrap.
In the Text Wrap panel, choose this button to have the text wrap around an object.
Set the distance you want the text to be spaced from the image. ( A good standard distance is 0.25 inch.)
Even if you move the object or image around, the text should remain wrapped around it at the distance you specified.