What does the Variance Inflationary Factor Measure?

Answer 1

I think you mean Var (aX) where a is a constant.

Var(aX) = a^2 * Var(X)

and a^2 would be the inflationary factor. If 'a' was 5% interest increase, or 1.05, the variance would change by 1.05^2 = 1.1025