Prices get bid up, but price inflation is different from inflation. Price inflation is the increase in prices brought about through the auction mechanism. But i

Prices get bid up, but price inflation is different from inflation. Price inflation is the increase in prices brought about through the auction mechanism. But in our circumstances, we get economy-wide price increases because of increases in the total stock of money. Price inflation causes money to lose value, so we can't really say there is an overvaluation simply because prices have increased. It could very well be the case that valuation hasn't drastically changed at all, but newer, cheaper money is flooding in which causes price inflation.