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Inflation occurs for many reasons. Inflation and devaluation of currency are related to a certain extent. A currency is usually devalued based on perception and investor demand. This causes currency inflation or the addition of printed or virtual currently in the money supply. However, currency inflation does not always cause price inflation.
Why does Inflation Occur?
There are many theories floating around that try to explain why inflation occurs. The Neo-Classical Theory believes that inflation occurs because of increase in money supply while the Neo-Keynesian Theory asserts that inflation occurs by the lowering of productivity.
The Neo-Classical Theory is the oldest and most widely accepted theory when it comes to understanding why inflation occurs. Before introduction of fiat currency, there was a limit on the inflation rate as gold and silver values were limited because these metals were in limited supply. The supply was limited as there was a cap on how much gold and silver could be mined and minted. Fiat currency metals like copper were valued by the gold and silver that made up the coins. Hence, gold and silver were not just currency, they were also money.
As money supply increased (that is copper fiat currency), inflation also increased and this caused people to hoard gold coins. This theory is even true today and many attribute this as the main cause of inflation.
The other school of thought is the Monetary Theory who believes that inflation is caused because there is too money to buy too many good or there is a lack of currency and increase of money causes prices to rise and hence, an economy sees inflation.
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In the last few decades we have seen that hyper inflation has been affecting almost all developing countries. Even the developed countries in the world have been fighting on and off with high inflation, especially after World War II. 
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