Nominal GDP is an assessment of economic production in an economy that includes current prices in its calculation. In other words, it doesn't strip out inflation or the pace of rising prices, which can inflate the growth figure.

Why does inflation make nominal GDP?

The value of final goods and services evaluated at current-year prices. Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next? When nominal GDP increases from year to year, the increase is due partly to changes in prices and partly to changes in quantities.

Does real GDP increase with inflation?

Due to inflation, GDP increases and does not actually reflect the true growth in an economy. That is why the GDP must be divided by the inflation rate (raised to the power of units of time in which the rate is measured) to get the growth of the real GDP.