A UBI only causes temporary inflation because it does not affect the structural causes of inflation that already exist.

Conclusions Overall, the limited evidence on the impact of cash transfers on prices suggests a very small, almost negligible, increase in prices. The reason is that the increase in demand is offset by an increase in supply. However, for those goods where producers have greater ability to control prices, price increases are more likely. These results are difficult to extrapolate to a scenario in which a UBI is implemented in an economy, although they point to the idea that the impact on prices depends on the production structure. And also how they are financed: a UBI financed by taxation of higher income and wealth would be a large-scale redistribution, and the increase in the purchasing power of lower income earners can have difficult-to-foresee and far-reaching effects. The increase in demand seems clear, but what is less clear is how it would change the productive supply. If the latter is adapted to the former, prices would not increase. The time dimension is also important. Demand reacts almost instantaneously, while the production structure changes more slowly and gradually. This could generate temporary price effects. The simple relationship according to which the increase in disposable income of a large part of the population will generate a generalised increase in prices per se, does not seem realistic. On the other hand, and finally, it should be noted that the UBI is not an economic policy aimed at controlling and/or regulating prices. The UBI is not a panacea that solves everything: its purpose is to guarantee people's material existence. The problems caused by price increases across the board or in specific markets such as housing or energy, which are current today, would continue to exist with a UBI. They could be more or less intensified by the increase in people's income, but the structural problems that generate them would continue. Therefore, while it is necessary to contemplate the effects of a UBI on prices, one must also be clear about its purpose, and be clear that targeted tools are needed to address other issues.