Why Are Labor Unions Not Inflationary?

Labor unions are set up to regulate the wages and prices of goods and services in a particular sector of the market. If unions succeed in raising wages, it is likely that producers will raise their prices in order to offset the mandatory cost per worker. Inflation occurs when new money is pumped into the economy and people raise prices to offset the depreciation of the dollar. Even though labor unions do distort the free market system, they aren't inflationary because they don't create new