To give you an idea of what you say doesnt work, it would be exactly like saying bitcoin is inflationary because mining causes an increase in the money supply. This can be potentially true, but at the end of the day its not the primary driver of price. In fact, the most rapid increase in bitcoin value was when during the time when the daily increase in supply was largest (be percentage). The primary driver is not the increasing supply of money, but increasing adoption causing an increase to the reasonable value for market cap.
If increased supply meant decreased price, we would see currencies like bitcoin with stable market caps, increasing supplies and decreasing price... that simply isnt the case.