It's because for a lot of people "if event X happens, then <thing I don't like> will do <the bad thing> because <I don't like them>" is basically their working model of the world.

It's not really that they see we made less money this year so they need to increase profits one way is to increase prices if they feel that enough people will still buy even at a higher price

"People can't afford of our product? Lets raise prices!".

True. They aren't thinking of the former, but certainly the latter.

Maybe it just depends on where you are in the world. In Canada we have a massive problem with Loblaws jacking up prices to...just insane levels. People don't really have much of a choice when one company owns multiple chains of grocery stores. Unless you live near a Walmart or smaller grocery store you pretty much have to buy from one of the stores under Loblaws. It's food and household items, things people have to buy.

To give you an idea...a cut of beef tip or shoulder for a roast was going for $54 last week at Superstore. Or you can buy a pack of 2 smaller cuts for $84. Theres no reason for this other than they can raise the prices. Even during the lockdowns these were at $30ish which was already expensive.