California doesn't have any tools at all to fix inflation. But it does have an buttload of coin it can give away to lower income people.
Only because our infrastructure isn't being upgraded (more reservoirs!) or maintained (hello, Oroville Dam) and the unfunded pension liability is simply ignored.
In theory it could remove money from the economy by raising taxes. But that is deeply unpopular and could increase the likelihood of a recession. Reforming zoning and Proposition 13 would slow housing inflation.
The Democrats tried partly repealing Prop 13 and the voters swatted it down.
Someone needs to teach Dems some basics of economics. In WSB terms: "Money printer goes brrrr"