No, those two circumstances are mutually exclusive.
INFLATION is the devaluation of your currency (ie. it takes more of your currency to buy the same thing).
DEFLATION is the enhancement of your currency (ie., things cost less).
You can have one or none, but not both at the same time.
I'm afraid not. You're ignoring how credit originates and is distributed in our financial system.
The scope of the terms "inflation" and "deflation" is too narrow to capture our current situation. The credit bubble collapse is deflationary, the Central bank's response is inflationary. Unfortunately, the two will not neatly cancel out.