> Inflation is actually the increase in the money supply

It's not that simple. That might be how it is defined in economy textbook, but in practice, how do government agencies measure inflation? You have predefined basket of consumer goods and record their prices over time, and that price increase is reported as "inflation rate", and that's what gets reported in TV news.

And yet you somehow blame people for misunderstanding the term when the wrong definition is hammered into their brains all the time by all the mainstream media.