Economic growth is driven by consumer demand and an increase in consumption levels. Inflation helps this increase in demand and consumption. So inflation is coincidental to steady economic growth. This is particularly true in the case of an economy that has a scope of further production and growth. More demand would mean more production and accelerated economic growth. Lending and borrowing also receive a boost as borrowers are happy to repay the currency at a lesser than what it was borrowed for. This also increases spending in an inflationary economy.