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What is inflation?

Over at the new mises.com forums, I posted a reply to a topic titled The Myths surrounding the phenomenon of inflation…:

The problem in defining what causes inflation is that the two parties generally do not agree what the definition of inflation is.

Austrians, such as most of us, believe that the definition of inflation is “the increase in money supply,” therefore the cause of inflation is “increasing the money supply.” Non-Austrian Economists tend to believe that the definition of inflation is “the increase in prices in a market,” and is caused by an increased demand for a market, or a decreased supply of that market (services or product).

Read this entire article at the gold investment site.