When inflation is quite serious, the price difference between the original value and the replacement value of fixed assets is extremely alarming. It is understood that there is a chemical factory in Beijing that imported a complete set of 300,000 tons of polyethylene equipment in 1974 with a total cost of 260 million yuan. Now the replacement value is nearly 20 times higher. This situation makes the fixed assets accrued based on the original value. The amount of depreciation is far from compensating for the loss of fixed assets, resulting in the phenomenon of inflated cost reduction, inflated profit increase, and inflated fiscal revenue. In particular, the implementation of the contract management responsibility system cannot accurately reflect the true performance of operators. Because the contracting base is generally determined based on the profit realized during the base period or the average capital profit rate method, both methods present the same problem. Because the depreciation amount is based on the original value, and inflation is not taken into account, the amount of depreciation that should be provided is reduced, and the inflated cost reduction and inflated profit increase are not achieved through the contractor's own efforts. In addition, the assessment of the completion of contracting indicators generally requires the assessment of the capital profit rate indicator, that is, the ratio of the amount of profit to the amount of capital occupied. Because the calculation of the amount of profit is unreal, the level of the indicator cannot truly explain the problem. Therefore, we cannot ignore the existence of this phenomenon and it is necessary to study the impact of inflation on the depreciation of fixed assets. The author believes that under inflation, the total amount of fixed asset depreciation funds withdrawn should be close to or equal to its actual cost, that is, the replacement value.