NO it's the opposite problem for Bitcoin. Bitcoin is deflating not inflating.
It is the opposite, but Bitcoin is not deflating, it's inflating (at a minimum at a rate of 3600 bitcoins per day). Eventually it might become inflationary-neutral, but for now it's an inflationary currency... which means any day the price of BTC isn't going down, is a day in which BTC value is going up.
Deflation is about
value not
supply. The number of Bitcoins is completely irreverent.
Here is a quote from wikipedia "deflation increases the real value of money"
http://en.wikipedia.org/wiki/DeflationTime and time again we see Bitcoiners talking about economics like they are qualified and have a degree.
Perhaps an example will help you understand:
In Janurary 2013 a loaf of bread cost 1 USD
100 USD would buy you 100 loaves of bread
1 Bitcoin would buy you 13 loaves of bread
In Janurary 2014 a loaf of bread now costs 2 USD
100 USD will buy you 50 loaves of bread (you get less for your money - inflation)
1 Bitcoin will buy you 500 loaves of bread (you get more for you Bitcoin - deflation)
Hope this helps.
And yet people keep using fiat.