Should inflation by business when the government increases wages be illegal ?

When the government steps in to stop profit. Why would any business person keep their business open?  Most business fail already, why take the chance if you already know, your abilty to earn will be limited? The risks will not be worth the reward.

If you're worried about businesses creating inflation, the public should own essential businesses like utilities to take away their profit motive.

Businesses do have to raise their prices to a certain extent, to still make a profit. But many of them do go way overboard in raising up their prices.