I know. You're right. It's a supply shock (S to the left) in the isolated sector. Inflation refers to MS. Correct

It seems to me you're conflating supply curve shift to the left with price inflation, which is a phenomena of increased money supply. 

premitive1

In the short term, supply-side destructions can very well have an inflationary effect. After that, the economy can adjust if it has a free market.

TomK

Supply and Demand of the underlying good are not related to inflation. changes in the money supply are related to inflation.