Because inflation doesn’t exist, it’s an invented idea. If nobody told you that inflation was 8%, you’d only increase your prices if you had a reason to. That

Because inflation doesn’t exist, it’s an invented idea. If nobody told you that inflation was 8%, you’d only increase your prices if you had a reason to. That reason could be increased demand, increased costs. Those could come about from increased money supply but that would be slow and unlikely. When the government announces inflation will be 8%, everyone puts their prices up by 8% + 3%. Inflation is therefore 11%. Even though none of them even had a reason to do it. That 11% price increase then inflates their balance sheet. This surplus lets them give it to the wealthy or splurge on stupid things like buying twitter. The wealthy then have an inflated bank balance. This surplus lets them buy investments or splurge on stupid things. These purchases then cause prices to increase. Which signals the government to announce that prices should increase more…