Inflation is known in the English language as (Inflation), a concept used to refer to the economic situation, which is affected by the rise in prices of goods and services, with a decrease in the purchasing power associated with the exchange rate, which affects the business sector, specifically in industrial and service companies.

Inflation is also known as the general increase in most price values, accompanied by an effect on the value of money in circulation, which leads to a decrease in its actual value, and other definitions of inflation is an increase in the volume of money in the market, which results in a loss of the real value of currencies, offset by an increase in the price of Goods and services in commercial markets.

The use of the concept of inflation for the first time dates back to European economies, specifically in the modern history of Europe. It was used as a measure of consumer prices during the Industrial Revolution period. Inflation was a means to determine average prices distributed over food items. The term inflation spread significantly in the economic sectors in Spain, England, and Brussels. The exchange rate index of currencies in these areas was equal to the purchasing power before it showed a noticeable rise, which led to an imbalance between the economic indicators, and this matter was called inflation.

Inflation is divided into a group of types, which affect different sectors of the economy, namely:
- Authentic inflation:
It is the inflation that is also known as normal inflation, and it is caused by the increase in the population, which leads to an increase in their consumer needs. Therefore, governments issue a large amount of currency, and this leads to a rise in the prices of consumer products in the market.

Inflation on demand:
It is the inflation that leads to a rise in prices due to the excess demand for goods and services, which is clearly shown by comparing the difference in prices between locally made products, and those imported from other countries. This inflation may appear temporarily, or continue for a long period of time, and it usually includes basic food commodities, tourist excursions in the holiday season.

- Creeping inflation:
It is the inflation that begins in a gradual manner, as production rates decrease, which leads to a decrease in the availability of goods and services, and this results in a gradual rise in their prices, due to an increase in the purchase of goods for the purpose of storing them, which leads to a halt in production growth.

- Hyperinflation:
It is the inflation that occurs when moving from a current economic sector to a new economic sector, and it may sometimes occur as a result of wars. Therefore, it is considered one of the most difficult types of inflation, and the most negative for societies.
- Suppressed inflation:
It is the inflation that appears after the government’s keenness to increase the pumping of money, due to public expenditures, which later leads to an increase in the prices of services and products in the markets, so the government intervenes in order to determine the upper limit of prices, which contributes to controlling dealing with buying and selling operations.

- Imported inflation.
It is the inflation that results from the effect of the increase in the prices of imported goods, which subsequently leads to an increase in the prices of domestic goods.
- stagflation:
It is the inflation that occurs during a period of stagnation on demand, which leads to a decrease or halt in production, which reflects negative results on a set of economic indicators, such as: high unemployment and an increase in the rate of monopoly on goods.

The emergence of inflation depends on the following reasons:
- Increasing demand: It is one of the most important and influential reasons, which leads to continuous inflation, as the amount of money increases with the lack of goods, which is offset by an increase in demand, and a decrease in the supply of goods.
- - High prices of production costs: which lead to an increase in product prices, in order for companies to achieve marginal profits, and result in an increase in production costs, wages, and other other costs.

There are a number of ways and means that help reduce inflation, including:
- Confronting the direct and indirect causes that lead to the occurrence of inflation on a large scale in societies; Through the use of a set of financial and monetary policies and means that lead to containing inflation.
- Exploiting all available resources (productive capacity), which contribute to providing local production at acceptable and appropriate prices, and it is possible to benefit from it to cover a high percentage of the population's needs.
- Taking care to promote equilibrium in the exchange rate, which contributes to limiting the issuance of money and increasing prices in general.

Many economists were interested in studying the phenomenon of inflation, which prompted them to formulate a set of theories that help to study it, the most important of which are:
- Quantum theory:
Quantitative theory is one of the oldest theories that concerned itself with the study of inflation, by setting prices based on financial value, as it assumes a specific amount of money, which people must keep, in order to use it in their daily expenses, especially fixed ones, such as: buying basic things Paying consumer bills, etc.

The first ideas go back to the quantity theory of the eighteenth century AD, specifically to the economic thinker David Hume, who assumed the ability to produce, in proportion to the quantities allocated for consumption in a realistic, but did not continue to apply private ideas in this theory, Because of the outbreak of world wars, and their impact on the international economy, but in the middle of the twentieth century AD, the world and economic thinker Milton Friedman appeared, who was interested in developing the ideas of quantitative theory, by studying the supplied quantities of money, and then measuring its trading index; In order to control inflation.

- Keynesian theory:
The Keynesian theory is the theory formulated by the economist John Keynes, which states that individuals tend to consume from the additional amounts, which they get as a result of their extra work, and generally affect income levels, and this theory helps to make a set of predictions about spending standards On goods and services, the Keynesian theory also contributes to the study of economic activity and investment levels, especially in industrial fields, which provide the required control over financial indicators.