[expat_panama]

Supply shocks, neither positive or negative, are not deflationary nor deflationary. They may decrease or increase prices, but that is not inflation...

Sounds we're got different inflation definitions; maybe we'd be get more done if we picked one and went from there.  Here's one that most folks are already using:

inflation (ɪnˈfleɪʃən)

n

(Economics) a progressive increase in the general level of prices brought about by an expansion in demand or the money supply (demand-pull inflation) or by autonomous increases in costs (cost-push inflation). Compare deflation

Collins English Dictionary – Complete and Unabridged © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003

[1010RD]

Nope, KarlInOhio has the correct definition. Improvements in productivity, which theoretically can lead to general deflation are good things.

Inflation is a monetary event, too much money chasing too few goods. See Spain’s experience with American gold.