Yep - AFAIK, with Simple recovery, SQL Server normally reuses log space after checkpoints. Disabling Auto Shrink does not prevent this. Auto Shrink controls whether SQL Server physically reduces the size of the .ldf file.
Check:
SELECT name, recovery_model_desc, log_reuse_wait_desc
FROM sys.databases
WHERE name = 'YourDatabaseName';
You want log_reuse_wait_desc to be NOTHING. If it says ACTIVE_TRANSACTION, for example, an application transaction may have been left open and is preventing log truncation.
Also, your continuous inserts can cause the log to grow. Every insert is logged, including changes to indexes. Simple recovery doesn't eliminate logging - it allows inactive log records to be reused.
So 21 MB → 33 MB → 44 MB → 54 MB is worth investigating, but don't enable Auto Shrink or manually shrink the log yet. First check log_reuse_wait_desc. That value should tell you what is preventing reuse.
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hth
Marcin