<p>
</p>
<p>It’s when your school gives out good grades too easily, i. e. they aren’t representative of your actual achievement. In a non-grade-inflating (and non-grade-deflating) school, getting an A strongly correlates with getting a 5 on the exam, B’s correlate with 4’s, C’s correlate with 3’s, and so on. If a school gives A’s to students who end up getting 3’s and 4’s (and lower) on the exam, that school probably grade inflates.</p>