K-12 Tax & Spending Climate: Broad money supply and price inflation are rather correlated.

Lyn Alden:

The most precise way to phrase it is that rapid money supply growth is necessary but not sufficient to cause widespread price inflation.

In other words, price inflation always tends to happen when money supply grows very quickly, but a rapid growth in money supply does not always lead to substantial price inflation.

In the United States, for example, we can look at the 5-year rolling growth rate of M2 and CPI over the past 150 years: