What's causing all the inflation?

Merchants didn't really directly cause inflation, the hack did. The merchants are just making sure their mesos aren't losing value through the inflation by buying up high-demand items, which retain their value as long as there no new quest giving away 60% glove att scrolls to everyone, new 15 att 0 slot glove coming out, etc.

So I don't think they should be blamed for not wanting to lose the value of what they own.

I know and understand that, but with someone who basically creates a market for himself where his price is going to pretty much be the best price, which is still higher than anyone would actually want to pay, it is not a case of merchant and consumer anymore, it is a case of buy it or die.

I would rather have the hackers that are just the meso sellers running around than the so called "legit" merchant who buys out everything to force prices up. At least that way i still might be able to afford to upgrade some of my equips, which either 1 or none of are actually godly. Basically my 14 dex archer shoe is the best thing ive ever really had.