Price-Deflation is what you are used to hearing about in Bitcoin. That term is used to describe the prices of goods/services as they decrease, because the value of Bitcoin goes up.
Price-Inflation is the opposite. When prices of goods/services increase because the value of Bitcoin goes down.
Example: As the Bitcoin price goes from $10 to $20, the prices of goods/services goes down from 20BTC to 10BTC. As the Bitcoin price goes from $20 to $10, the prices of goods/services goes from 10BTC to 20BTC!
No.
Price-Inflation = increasing prices.
Price-Deflation = decreasing prices.
That's all actually. A Bitcoin (and any other unit of money) loses/gains purchasing power as a result of increasing/decreasing prices of goods and services.
Inflation =/= bitcoin stock market rate goes down.
Deflation =/= bitcoin stock market rate goes up.