From Credit Writedown, a couple of Eurozone charts. http://www.creditwritedowns.com/2013/05/the-ecb-will-act-to-avoid-a-def…
From the Fed
"The Committee continues to see downside risks to the economic outlook. The Committee also anticipates that inflation over the medium term likely will run at or below its 2 percent objective."
http://www.federalreserve.gov/newsevents/press/monetary/20130501a.htm
Comparing CPI and Industrial Input Price Index to M2 shows an increase in purchasing power while the money supply is greatly expanded. In a stable inflationary regime an expansion of the money supply should drive down the purchasing power of a dollar, in an inflationary period the purchasing power should dramatically decrease as the supply of money increases, instead we see both the purchasing power of a dollar increase and the money supply increase.
Retail measures prices (CPI et al) have fallen in the last two years slightly, while the IIPI has fallen faster. The stability of the CPI can be attributed to "stickiness" where businesses can maintain retail prices and retain effective "profits". We do see some of this in the commodities sector,especially in the volatile energy sector where spot prices have been affected by political events and constraints, and not actual increases in the cost of production.
Deflation worries have more basis and support in the near and medium terms than inflation worries. The long term (famously nebulous and not lent to prediction) inflation worries are now being measured against the Japan ongoing Japan experience. Adding to deflation's weight is the circular Central Banks' devaluations with limited economic impact.
Fiscal stimulus of a proportionate scale is the only untested response to date in the financial crisis (ex Japan beginning 2013). Policy makers concerned about long term debt implications also need to include output gap costs to the economy and revenue. Other structural damages from the output gap are difficult to measure but no less of an impact on the long term economy, i.e. chronically unemployed workers and a lack of competitive investments retarding future GDP.
Balance sheet correction is a Newtonian response in a Quantum financial universe.