More spending means more demand means more production
No, inflation happens in that gap between demand and production.
Say I’m selling 5 sandwiches and suddenly 7 people want them, now I can put up the price and sell them to the 5 who are willing/able to pay slightly more.
Edit: this is why the RBNZ typically raises the OCR to curb inflation. Mortgages etc going up makes people’s spending go down and slows inflation.