for example to the price of a basket of groceries?

And what happens if there is a drought and the price of groceries skyrocket due to food shortages.

The idea that inflation and price increases are the same is mistaken. Prices can go up or down for a variety of reasons.

It is another fallacy that the economics profession pushed on people misleading them into believe every time there are price increases it is due to "money printing".

Asset backed stablecoins have a calming effect on the mind and some of them have their governance and minting distributed to multiple parties making their operation less vulnerable for takeovers but still the deposited backing asset is always something rather physical which could be seized by force.

It is even worse. The asset backed are tied to the banking system through their backing (either cash or treasuries). This means we are not dealing with a separation.

So algos, in my view, are the only way to get free of it.