Do you know that the faster the money is being circulated over a short period of time also causes inflation. For example, if the same unit of money, say $10, has been spent rapidly in three unique transactions in a year, the velocity of that money is three. And if the supply of money as well as its velocity goes on, goods and services will not be able to keep up with the demand since there are more money chasing fewer goods. To counter the other side of the balance, companies increase prices. This phenomenon happens when money supply suddenly increases due to some monetary policies by the government.
Note that this doesn’t always happen. If confidence for the economy is lower, then banks tend to mitigate loans, people and business hoard rather than spend. This, in turn, slows down money circulation. Thus, slowing down inflation.
Mischievous companies more in particular, suppliers, importer, exporters can manipulate supply and demand in the market to elevate prices of goods most especially basic necessities. Limiting supplies with the purpose of increasing prices contributes to the increase of inflation.