Can inflation occur if the government maintains price ceilings? Yes, but in the form of nonmoney rationing devices such as first come, first served. The level of inflation could be measured by the length of the line for those waiting to be served. No, the government can legislate inflation away through price ceilings. No, price ceilings automatically stop all prices from rising in the economy. Yes, prices will still continue to rise on the black market, providing an accurate level of inflation