What Causes Inflation Inflation is caused by rapid growth in money supply. EconTalk · Milton Friedman on Money · at 4:25 · June 20th, 2020 ·Transcript On this episode ▶ What Causes Inflation at 4:25 ▶ How Is Interest Rate Used To Control The Value Of Money at 10:11 ▶ When Did The Central Banks Start To Control Growth Via Inflation-targeting at 15:42 ▶ When Are We Going To See The Next Major Inflation at 19:36