Inflation refers to the change in the prices of goods in eRepublik over time. Inflation can be thought of as a decrease in the value of the unit of currency and it is believed that high rates of inflation are caused by high rates of growth of the money supply.
The inflation system in eRepublik, aids the Congress in deciding on the appropriate tax rates in a country.
Inflation system was introduced on July 11, 2008.
There have been numerous occasions in eRepublik history where economic sabotage was committed against countries in an attempt to cause either massive inflation or deflation. One example is the Polish PTO and subsequent currency sabotage attempt committed against Germany at the onset of World War III.