Practically always, but never just more money for the same work. People dont ask very often because I've been lucky enough to be able to give people decent cost-of-living raises, recognition-of-effort raises, and promotions quite regularly. When someone asks for more money it's pretty much always the first step to a promotion, or at least some sort of additional responsibility that comes with a pay increase.
The irony is that the main reason people get paid more when they change job is because they move up at the same time.
I think the reasonable good-faith assumption in this discussion about inflation is that people are asking for a raise not to make more money but just to keep up with prices. So in reality, they are asking for the same amount of purchasing power.
So giving the same purchasing power for more responsibility would probably not look like a good deal for most (unless responsibility is your thing which is the case for some people).