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.