Definition of Inflation

Inflation is defined as an increase in the amount of money and credit in relation to the supply of goods and services. Often, inflation is erroneously defined by the effect that it has on the economy. When people notice that gas and food is getting more expensive, they often label that phenomenon inflation. Rising prices, however, are really just the result of inflation. The reason I bring this up is that today I read a headline that is completely inaccurate. Either the reporter doesn't know what he is talking about or the news is being manipulated. Here is the Bloomberg Businessweek headline:

Dollar Gains on Prospects Fed Will Succeed in Sparking Inflation

This is just not possible, the USD cannot move higher if inflation is expected. Now here is a headline from Yahoo Finance written by an AP business writer:

China official: dollar printing causing inflation

Now this headline is completely accurate.