What does "inflate" mean here?

I'm installing Oracle database and below is an excerpt of the installation log. What does inflating mean here? I know the installer was copying these files to the destination when these lines were being printed. So does inflating is a humorous way of saying copying? Like inflating a dinghy is essentially doing some preparation work, just like copying files. Is my understanding correct?

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Imagine your files are balloons. When the balloons are not inflated (compressed) they are smaller and easier to handle. You are inflating (decompressing) the 'balloons'.