Now the definition is subject to spin and disinformation. Get back to basic understandable functional definitions that actually make sense and inflation always comes from government intervention one way or another.

A rise in price due to a rise in production costs either of raw materials or wages is not inflationary because the rise in price is equaled by a rise in value received. Additionally, the rise in price is returned to the economy and contributes to the net wealth of a society.

The government can intervene to cause inflation in many ways. Inflation can happen when governments print an excess of money to deal with a crisis. As a result, prices end up rising at an extremely high speed to keep up with the currency surplus. This is called the demand-pull, in which prices are forced upwards because of a high demand. This is what is commonly meant by inflation.

Inflation can also be caused by international lending and national debts. As nations borrow money, they have to deal with interests, which in the end cause prices to rise as a way of keeping up with their debts. A deep drop of the exchange rate can also result in inflation, as governments will have to deal with differences in the import/export level.

Inflation can be caused by federal taxes put on consumer products such as cigarettes or fuel. As the taxes rise, suppliers often pass on the burden to the consumer.

Wars are often cause for inflation, as governments must both recoup the money spent and repay the funds borrowed from the central bank. War often affects everything from international trading to labor costs to product demand, so in the end it always produces a rise in prices.

Otherwise, only monopolies, monopolies sanctioned by governments, can cause inflationary price rises. In a free and open market, unhindered by government intervention, the price always reflects the actual costs of production and distribution with profits kept to minimal lows by competition. This would also be an accurate method of valuation.

Since the Federal Reserve System was created in 1913 the cumulative inflation has been 1929%. Yes, that is right One Thousand Nine Hundred Twenty Nine percent inflation.

Prices increased by 1900% cost 20 times more. Something that cost $100 in 1914 would cost $2,029 now!

If you figure in the rise in productivity, which should have dropped prices across the board, the real inflation since the Fed took over the U.S. money supply is beyond ordinary comprehension.