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Notes -
The amount of goods and serviced provided can decrease, too. Producers can't lower prices very much without losing money (there's a reason prices are sticky downwards) while consumers can't pay more to maintain consumption (with a stable money supply). So you have less economic activity for the money supply, with inflation as the proportion between them changes for the worst (just on the other side of the equation).
This was one of the reasons that I insist that policy decisions were the major drivers of Covid-era inflation. Not only were massive supplies of money printed and distributed, but governments banned or severely restricted major sectors of the economy for a long period of time. That money is going to go somewhere.
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