Inhibition is a dangerous concept. To be inhibited is to be limited and limited is never a way to live or lead. Here are some steps that may help to deal with this concept :)
Assess the situation. Think deeply about your last social interaction. Were you the life of the party or were you the wimp at the bar?
Face the situation. Pay attention to your social behavior. Realize that you are in control of your life, and you can fight through your inhibitions and come out a better and happier person.
Realize the importance of assessing the situation. Your timidity might bring about personal insecurities which will further stop you from communicating openly to your friends, family members and so on making you feel frustrated and unhappy.
Stay true to who you are. Don't be ashamed of who you are, you should accept and respect yourself. Behave naturally, react to circumstances in any way you want to, do not change your actions or opinions because of others. Stay strong and free willed!
Lose control. Always have a genuine smile on your face. People around you are a mirror to the person you are. Mingle with the people around you, don't think about who started the conversation, think of yourself as the bigger person and start the conversation first.
Volunteer and participate. Participate in group activities as much as possible, the more you mingle, the more fear you overcome. The less fear you have, the fewer inhibitions you will have.
Don't go overboard. Losing your inhibitions doesn't mean shrugging off responsibility. Learn to have proper boundaries so that you don't become a menace to the others when you are having such a good time.