When a central bank prints money to pay government debt, causing rising prices that erode the purchasing power of money held by the public, it is called an inflation tax.
Inflation is the rate of increase in prices over a given time period. Inflation is normally a broad measure, which includes the overall increase in expenses or the increase in the price of living in a country.
Prices increase when the government prints too much cash. Excessive growth inside the cash supply always leads to inflation. A standard increase in costs and fall in the purchasing value of money. Inflation drives up prices and drives down the value of money.
Inflation can reduce the value of debt, in case your wages keep pace with inflation. It is possible to have inflation with no increase in income. In this case, it is tougher to repay your debt. Your earnings are the same, but you need to spend extra on buying goods leaving much less disposable income to pay your debt.
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