I know this isn't the whole picture, but doesn't a spike in inflation imply some kind of dilution of value? It's not as though the govt would be creating currency to fund this, it was collected from somewhere. Doesn't the idea that the price of everything will go up because some guy in a suit noticed that everyone has more money to spend, fall apart the second a competitor decides to keep their prices low?

Things like rent and certain utilities I can understand this might happen to but a mass devaluing of a currency just because the flow of money is routed a little different doesn't smell right to me.