Fiat money has been inflated by a 400% since 2008, that is the inflation, but why the price of everything did not rise at least 200%? This just proved that inflative money will not necessary cause price rise, when majority of people are in panic mode, the money supply can increase by 10 fold without causing any significant price appreciation on goods and services, since everyone is saving
The price level is typically decided by consensus
In a similar vein the production of new BTC dose not necessarily lead to reduction in purchasing power of BTC relative to real goods and services. Their is good evidence that most newly mined BTCs rapidly end up in cold-storage and only a small amount is actually circulating and bidding on goods (including dollars), thus we see things like the volume on exchanges being fairly consistent over the years even as total coin base increased substantially. The effective coin-base may actually be decreasing as bubbles grow, we saw the depth of BTC offers on MtGox eventually decline to just 2 weeks worth of mined coins just prior to the crash.