Yeah, I was talking more about the general volatility. However I would completely disagree that BTC is not affected by inflation. Any time your buying power decreases, you have inflation. Can any of us say that has never happened to our personal buying power? Of course, over the long-term BTC does deflate.
In the normal scenario, the purchase power of Bitcoin will increase proportional to its popularity. Right now, some 1 million people are using Bitcoins. The purchase power will increase by 100 times, if 100 million people use it.