This is exactly wrong. The cost basic goods would increase. Basic Income would immediately have an inflationary effect as the money supply for these good would be expanded drastically.
The Employer would not see as much benefit as you'd think as presumably he would be amongst the class of people/entities (including the middle class, upper class, and corporation) which would be paying for this indirectly in the form of taxes.
Alternatively, if Basic income is debt finance (and not financed directly through taxes), incurring more debt also has inflationary effects.
3D printing and market forces will take care of raised prices. Cost of production are going down. If company X decides to sell for 100% increase company Y will see an opportunity to undercut and we will continue with our race to the bottom. If no one offers value a new company Z will enter the market and provide it or people will just start manufacturing/growing it at home.
Inflation only occurs with increased supply of new money into the system so whether or not there is inflation depends entirely where the money to pay for BI comes from.
I don't suppose it's guaranteed that the overall incomes of the lowest earners would actualy increase though. Maybe they would, but it's possible wages will fall and rents will rise to cancel that out.
You may well be right about employers. Basic income isn't going to wish away all the problems of the poor. The main benefits are likely to be a simpler, fairer and more efficient benefits system and more opportunities for employment.
It may or may not be wrong. There will definitely be some inflation, but there will also be an equilibrium. It is also a possibility that if the UBI is adjusted accordingly, that the relative costs of things will remain roughly the same.
As for whether employers will benefit, recognize that demand will also increase when those who were formerly impoverished begin consuming things. It is direct and distributed economic stimulus.
The Employer would not see as much benefit as you'd think as presumably he would be amongst the class of people/entities (including the middle class, upper class, and corporation) which would be paying for this indirectly in the form of taxes.
Alternatively, if Basic income is debt finance (and not financed directly through taxes), incurring more debt also has inflationary effects.