Only a controlled economy can be spared from inflation (though this is also debatable). In an open market like we are enjoying right now, inflation is a matter of fact and is part of the reality of life. Nobody is immune from the power of inflation.

Inflation happens when when the price of goods/services rise up and the money you are holding has less purchasing power like it has before. When inflation rate is going up what is happening is that our money's purchasing is going down. For example, if one bar of soap can cost $1 and the inflation is 5% then there is a possibility that soon the cost of that soap can be $1.05 or maybe what the soap manufacturer would do is reduce the quantity and quality side so that the price remains but the same product is not there anymore.

Now, talking about inflation, I am wondering if Bitcoin can be an anti-inflation agent or will it even induce inflation to a higher level?

There have been many discussions -- continuing discussions in fact -- on this subject and still there is no definite answer maybe because Bitcoin is still relatively new and theories/speculations are still waiting for validation.