The paper focuses on Federico CaffÃ¨â€™s outlook towards the problem of inflation. His attention for the claims of full employment didnâ€™t prevent him from considering rigorously the negative impact of inflation on the economic system. His analysis stresses the incidence of Â«administrated pricesÂ» and the distributive conflict arising from labour market on the process leading to the growth of prices in contemporary society. The policies he suggested try to overcome the trade off between inflation and unemployment arose in twentieth century economies. Among the microeconomic policies, a public regulation of private prices is required as a constraint of the inflationary movement of prices of monopolistic and oligopolistic industries. His criticism on incomes policies practiced by European and American governments is connected with the distribution inequities they contributed to set up; a fair acknowledgment of the political determinants of wages negotiation constitutes a fundamental premise for an incomes policy able to get a satisfactory stability of prices level.