In my simple mind, inflation works like this:

• I put $1,000 into my bank.
• Inflation is 10% per year.
• The bank buys $1,000 of gold with my money.
• I take out my $1,000 the following year.
• The bank sells its gold for $1,100.
• It gives me my $1,000 back and pockets the change.

Once you look at it like that you can see why the banking community might like inflation.