Wrong. If we had a currency actually backed by something (e.g. gold) then inflation could be ZERO. Inflation is a form of taxation that redistributes wealth to those that create the money, i.e. governments/banks. Now, only a certain level of inflation is politically tolerable in a democracy before a government will be punished for it, hence the need to keep it under control and the need for other forms of taxation to make up the shortfall.