The thing is its actually less inflation then Bitcoin or Litecoin at least for the next few years anyway. See the following (taken from reddit thread) which shows the inflation amount over the next 5 year period.

        Dogecoin Bitcoin Litecoin
  2015	5.26%	 10%	 33.33%
  2016	5% 	 9.09%	 12.5%
  2017	4.76%	 4.1%	 11.11%
  2018	4.54%	 4%	 10%
  2019	4.35%	 3.85%	 9.09%
  2020	4.2%	 3.7%	 4.1%

People need to keep in mind that dogecoin's inflation is set at 10,000 coins per block forever once mined out. As such the inflation amount will reduce each year as more coins exist, unless of course people manage to loose about 5 billion coins a year. The other thing to remember is dogecoin currently has about 5% inflation a week, so anyone dumping it over this news is a bad speculator.

EDIT before someone jumps down my throat I am checking the numbers now and the bitcoin one looks to be slightly off, please take this as close, but not exact please. If you have the exact numbers pass them on and I will update.