We have to use the accepted definitions of these words. Can't make up our own definitions:
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time[1] resulting in a loss of value of currency.
https://en.wikipedia.org/wiki/InflationThe definition does not speak to money supply.
depends on what side of the fence you are
$1200 may have got you 200 bitcoins 5 years ago
1btc may have got you $6 bitcoins 5 years ago
both same thing. but dependant on what side of the fence you are on. are you a fiat lover or a bitcoin lover