This is WAY TOO IMPORTANT A TOPIC to address merely in a few comments.
Saville was one of the better commentators way back when to clarify things in this realm.
And its so important, especially because THEY want to keep the public from real understanding.

http://www.321gold.com/editorials/saville/saville032106.html

SS: “The definition
The correct definition of inflation is an increase in the supply of money that CAUSES a decrease in the purchasing power of money” (emphasis in original)

pdl – and pedro will note that “the supply of money” is the net volume of loans on private bankers’ books. … ie, CREDIT.
And in Ron McKinnon’s world, this encompasses bankers worldwide given relatively free global capital. Credit is fungible, absent effective capital controls. So inflation can be exported or imported.