Well, you're both right, or you're both wrong, depending on how you look at it. From your Wikipedia link: > The term "inflation" originally referred to increas

Well, you're both right, or you're both wrong, depending on how you look at it. From your Wikipedia link: > The term "inflation" originally referred to increases in the amount of money in circulation. Today, the term monetary inflation is generally used to distinguish such an occurrence from a general rise in prices, sometimes called price inflation. "Price inflation" is the increase of prices. "Monetary inflation" is increases in the size of the money supply. Economists originally used to use the term "inflation" to mean monetary inflation (larger money supply), and if it's an economist not speaking to a popular audience, that's probably what he means. A larger money supply (monetary inflation) typically results in higher prices (price inflation).