To fill something with air or gas so that it becomes larger. He used a pump to inflate the bicycle tire.
To increase something in size, amount, or importance, often in a way that is not justified. The company was accused of inflating its earnings to attract investors.
To exaggerate or make something seem more important than it really is. She tends to inflate her achievements when talking to potential employers.
To cause prices or the value of currency to rise, especially by increasing the supply of money. Rapid government spending can inflate the cost of living.