We discuss a new mechanism of obtaining a period of cosmological inflation in the context of string theory. This mechanism is based on embedded defects which form dynamically on higher dimensional D-branes. Such defects generate topological inflation, but unlike topological inflation from stable defects, here there is a natural graceful exit from inflation: the decay of the embedded defect. We demonstrate the idea in the context of a brane-antibrane annihilation process. The graceful exit mechanism suggested here applies generically to all realizations of inflation on D-branes.
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