It can be (and almost certainly is) both.

Companies LOVE an excuse to raise prices to where they "think" they should be, and inflation is a great time to do such.

The price of anything is what the market is willing to pay for it. If you are going to buy a carton of milk at $5, why would I sell it for $4?

The alternative is me not buying food.

Hmm...

Yeah, okay, whatever.