Some of the reasons I understand is that the inflation, at least in part, is due the lengths of incarceration that when compared to other countries, happen to be noticeably excessive for the same crime.
I would first go for reduced term lengths imposed in cases of non-violent offenders comparable to that of other countries for identical crimes committed. I would think that would help lighten the prison populations and supposedly ease the tax burden as well for housing and feeding them. Alternatives such as ankle bracelets and house style arrests in addition to parole, community service, and weekend jail terms may prove much better in a number of cases than full prison terms.
Also, I don't approve of drug use in general, but talks of legalisation of "light" drugs comparable to alcohol use may prove to be a benefit in the sense of weaning the prison population, and perhaps again the tax burden as well. Like alcohol, possession and use is one thing and abuse is another of which there are laws established to combat it. This includes redundancy of laws for arrestable offenses. (Of which multiple charges are imposed on what essentially amounts to a single offense). Redundant laws need to be repealed.