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With increased frequency I have seen the term "inflation" used and did not find it in the HQ glossary. I had always used the term myself to simply describe the unique premium or discount (deflation) that a given league's bidding dynamics create for certain marquee types of talent. For example, I play in a couple of auction football leagues in which first tier running backs always command a ~ 30% premium to their theortitical values. However, I've seen the term used in recent posts in a manner that implies something different and a more a function of a league's roster rules. Can someone please define "inflation"?
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Inflation is the concept, applicable only in carryover or freeze roto auction leagues, that the players protected or frozen by owners will have salaries less than those players' actual values. This means owners will have MORE $$ available to bid on FAs in the auction than if all players were acquired at current FMVs (ie., at salaries eqaul to their projected value).
This usually translates into a standard league with a 23-player roster and $260 salary cap requiring something like $300-325 in team roto value to compete for a title (even though the owners only spent $260 in salaries).
The degree of "profits" locked in on protected rosters (difference between aggregate salaries and aggregate value) determines the amount of inflation your league will have (and it's actually a "moving target" during the draft, b/c eventually, those "extra $$" get "soaked up" by owners overpaying compared to projected roto value - or else all owners would leave money on the table at the end of the draft.)
Look at this thread for more explanation and the formula for calculating inflation:
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