Auction/salary inflation occurs when a league’s budget dollars exceed the value of the available player pool. It is mostly commonly encountered in Keeper leagues. As an example, if a player you value at $20 is kept at a cost of $8, there will be extra money available to spend (+$12) on the rest of the player field.
In essence, the dollars remaining to spend across all teams exceeds the value of the players available. This means the price of the remaining players will rise since fantasy owners will always want to spend their entire budget.
Note that inflation can also occur in redraft leagues depending upon the level to which winning bids differ from your auction values. If you select the ‘Inflation’ check box in the Draft Wizard®, we will calculate the inflation rate and adjust your auction values as each pick is made.
If you’re in a keeper league, we recommend turning the inflation toggle on at the beginning of your draft. Since keepers are retained at costs lower than their current values, you should factor in (via inflation) how this affects the rest of the player pool.
We also recommend that you create an auction cheat sheet from projections and select your keeper league’s settings when creating this cheat sheet. This will inflate the values for the remaining players right off the bat due to lower fixed costs of your keepers. Essentially, this cheat sheet accounts for auction inflation before the draft begins, auction inflation checkbox would account for inflation throughout the draft.