There certainly is some strong inflation going on right now in regards to Bitcoins, because demand is outstripping supply.
You intended to say "strong deflation", right? Inflation is when the size of the monetary base is increasing relative to the size of the economy, which ultimately results in the drop in relative value of the currency. What we are experiencing, in aggregate, is deflation.
Inflation is when there is an increase of money bigger than the demand for money (not the size of the economy).