There are many factors that influence the economy, inflation is one of them. Basically inflation is increasing the price of general goods and services over a period. As we see, the value of money has no value for the next few years due to inflation. Today, every country is facing inflationary conditions in its economy. The GDP deflator is a basic tool that indicates the price level of domestically produced final goods and services in an economy. GDP stands for the final value of the gross domestic product of goods and services, also the GDP deflator shows that the change in base year GDP depends on changes in the price level. . Inflation, in contrast, is the rate at which the average price intensity increases or changes over the period, so the inflation rate defines the annual percentage changes in the price level as measured by the GDP deflator rather than the GDP deflator. GDP has an advantage over the consumer price index because it is not based only on a fixed basket of goods and services. It is a very effective inflation tool for identifying changes in consumer consumption and the newly produced goods and services reflected by this deflator. The consumer price index (CPI) also measures the adjustment of economic data and can also eliminate the effects of inflation by dividing a nominal quantity by the price index to indicate the real quantity in terms. Most economists agree that high inflation is caused by excessive growth in the money supply. According to M.Freidman's dictum that inflation is a monetary phenomenon, he developed a model of monetarism which is based on three foundations: quantity theory, the augmented expectations Phillips curve and Okun's law. In this model he taught the real effect generated by the growth of the money supply. Another important aspect of relations... the middle of the paper... could be devalued because exports are expected to increase in that country while in other The country is appreciating its position, it will pay a lower exchange rate while it will import any goods. Finally, Professor Perst, considering the effect of price inflation, concluded that indicators of government revenue in excess of expenditure are both relative to GDP. He said if people's income increases they will increase and will also face price inflation because higher income leads to higher income tax regardless of whether the increase in income is real or not. On the other side of spending, if the cost of government increases, people want to place a high demand on social services, so the relative price effect depends on the inflation rate. For example, if money wage growth and the share of total wage costs increase, this will push up public sector inflation..