Sorry, that's still incorrect. Inflation is a monetary phenomenon. In other words, it's caused by the government printing too much money. That is the only cause of inflation; c.f. Friedman. The liberal theories that said otherwise were thoroughly discredited during the "stagflation" of the 1970's. Since inflation is caused only by monetary policy, it follows that other actions (such as a change in the tax code, or any given wage agreements or contracts), cannot and do not cause inflation. Thus inflation, or lack thereof, is a complete irrelevancy in discussions of the FairTax or any other tax proposal.
You are so correct on inflation being monetary. One of the dead wrong FReeper conventional wisdoms is that higher energy prices cause inflation.