The world's central bankers are not increasing the money supply - quite the opposite. That's why Western Europe keeps talking about having Eurobonds that act similarly to our Federal treasury notes.
The US is able to create vast amounts of new debt because of our Federal system of government. Western Europe has no such bailout luxury.
China is seeing their outstanding loans begin to decrease. This means that their money supply is decreasing - deflationary.
Ah, but that isn't for lack of trying. The Bank of China is still cranking up the [figurative] printing presses, but the Chinese people just don't want to borrow. Ditto the Europeans -- why borrow when there's such a low prospect of profits?.
Nonetheless, just as in the U.S., where business won't borrow, either, the inflation will show up in assets: stock market, land, housing, art, etc..
We're a ways off from deflation. And I say that with disappointment. Deflation is a good thing -- it means the value of the currency is rising.