Inflation, which means a steady rise in prices overall, happens only when the total money supply in an economy grows. This increase in money, often called "printing money," can be physical cash or digital money created through lending and government policies. Without more money in the system, if prices go up in one area, they have to go down somewhere else because the total money available limits how much can be spent on everything. Sometimes prices rise temporarily due to supply problems, but that is not true inflation unless there is more money chasing goods. This key idea, highlighted by Milton Friedman in his Nobel Prize winning work, shows that lasting inflation is mainly caused by increases in the money supply.

Low income people chase goods with all their money. High income people squirrel it away or spend on luxury goods.

You’ll redistribute the money such that the things that people receiving the subsidies need/want now have more money chasing them. That will cause inflation of those goods.

I don’t think this causes lasting inflation, it causes a step up of inflation. Precisely in a way that once every thing stabilizes nobody is better or worse than they were previously. I read Friedman in ECON 101 thirty years ago, I’ve probably forgotten a lot but not the role of velocity in MV=PQ.