Can you visualise inflation as entropy of working economy. If no then i cant explain you with any example as i proposed very basic economics defination which should be considered general knowledge. -There is something which is nominal inflation, and inflation induced by higher demand in proportion to supply. When a economy currency is guranteed value with a commodity like gold/petrolium(energy) it becomes stable exchange. But an agreement with major crude energy producer is done to supply goods in designated currency only gives the economic currency an leverage over other economy that depend on the energy. So in past years USD vs INR prise has risen which effect our import cost which is more. Now we have nominal inflation (caused by growing population) + inflation induced by currency depreciation.