Ok, but what changed with scenario A? Monetary inflation! If the argument is that inflation drives prices up, which allows businesses flexibility to raise the

Ok, but what changed with scenario A? Monetary inflation! If the argument is that inflation drives prices up, which allows businesses flexibility to raise them even further, then I won't argue against that. But the price increases above inflation, aren't real inflation (which is defined by an across the board decrease in the value of money). The same thing happens when sales taxes are increased. Singapore just increase their GST and many businesses just increase prices well above the increase in tax.