The CPI came in at 5.4%, and that is inflationary.  The US Treasury bonds are decreasing in interest rates, and that is deflationary.  The market is at an all time peak, and if it cracks, it is deflationary.  What is going on?  How can we have inflation (and we all feel that inflation at the stores we shop in) and deflation at the same time?  Well today its inflation, and tomorrow (sometime) it will be deflation.  But when?  No one can tell you.