For people who claim to be "deep thinkers" you can't even get past the first stage of thought progression.
Maybe this should over-simplify it for ya'
People who complain that Inflation is terrible and ruining their lives should STFU if they are pumping "inflated" dollars into the economy! If Inflation was really THAT bad and having THAT MUCH of an effect on people then retail sales would be seeing record LOWS... not HIGHS!
Hey dummy.
There's really only a couple of ways this can go.
People will spend their budget but not be able to purchase as much. This results in the same amount of dollars to the store but on less items, so that's a wash in terms of sales (the report was about money spent, not product volume).
OR
People will spend over their prior budget to buy the same items they bought before. This results in an increase of sales (money and volume)
OR
The scenario you outline, people decide everything is too expensive and don't spend their budget. This might have an impact on big purchases like cars or vacations, but for retail sales it results in nothing. I'm not churning my own butter or laying my own eggs because they are too expensive, neither am I carving out the Legos I want to give to Timmy for Christmas.
There is no conceivable way (for someone with a brain) to argue that inflation would result in lesser sales of commodities or gifts.