There is no Inflation. All coins have been created with the ICO last year or so... thats the reason why the number of IOTAs is so high. It`s like with satoshis in Bitcoin, a small amount could be a whole transaction in the future.

Go through this post, there is no fees....that what the project is about Scalability and eliminating fee

I had the same concern but it turns out there are no fees because of how the tangle works. If my understanding is correct, when one transaction is requested the user transacting helps to approve a different transaction.

Yes, the transaction fees are practically nonexistent. That's what makes tangle even better for micropayments

And the are more transactions possible wit more participents. Opposite to Bitcoin, where more participents create problems, because the transactions per second are fixed.