Abstract
Inflation considers one of the monetary policy important tools to control the economic and posh it to a considerable stability. On the other hand, to achieve that goal the economic policy makers have to allow small percentage of inflation. That percent of inflation we will talk about it in this paper. Therefore, we gave some concepts on the causes of the inflation as well as its costs. In addition, the researchers looked to the inflation impacts on the purchasing power and the exchange rates. Further, we looked to the unemployment and how decreased due to allowing that small percent of inflation (inflation targeting).