That's what you'd think, but actually it doesn't cause inflation.
Certainly, the employer has to raise his prices in hopes of making the same profit. But consumers have finite disposable income and must now decide whether to spend their money on the more expensive hamburgers or the [relatively] less expensive bologna sandwiches. SOME of them will adjust their lunch spending habits and the burger joint will get less business. OTHERS of them will not change their lunch spending habits, but they'll now have less money to spend on TVs and automobiles. The law of supply and demand comes into play and the retailers of TVs and automobiles will have to lower their prices. Overall, the price increases in the burger joints will be offset by the price decreases in the television and automobile industries.
Inflation isn't a price increase by a single vendor or industry. It's a SYSTEM-WIDE increase in prices. Inflation can only happen when system-wide there is more money, or when system-wide there is a decrease in productivity. (It's actually when the rate of money printing outpaces the rate of productivity increases.) Neither of these is the case when employers are forced to pay some of their employees more.
The real risk imposed by a minimum wage increase isn't inflation but a loss of jobs and, potentially, the collapse of businesses that rely heavily on low wage employees. Government will see both as a loss of tax revenue.
| 
