That is correct, printing more money that can cause inflation. But governments only do this if there is an economic crisis happen because they wanted to demand more goods especially if people were suffered from it, for example, this pandemic crisis. I guess the government printing more money to avoid deflation.

Remember that we can't be defined as the value of Bitcoin without fiat. So, technically, we still need fiat over Bitcoin but it is good if they are working together and join forces at once.