We analyze a distinctive mechanism for inflation in which particle production slows down a scalar field on a steep potential, and show how it descends from angular moduli in string compactifications. The analysis of density perturbations -- taking into account the integrated effect of the produced particles and their quantum fluctuations -- requires somewhat new techniques that we develop. We then determine the conditions for this effect to produce sixty e-foldings of inflation with the correct amplitude of density perturbations at the Gaussian level, and show that these requirements can be straightforwardly satisfied. Finally, we estimate the amplitude of the non-Gaussianity in the power spectrum and find a significant equilateral contribution.

32 pages, 3 figures