Money supply measures across the developed world indicate a reduction in money supply per the level of economic activity. M3 in the US shows nil change since 2007, whilst economic activity and productivity have advanced over the same period. In the UK M3 money is down after peaking in early 2010. In Northern Europe M3 grew only slightly and in Southern Europe it is down.
Meanwhile the deployment of German and US technology to China has increased global productivity and reduced price levels for many industrial and manufactured goods. These cheap imports keep downward pressure on price levels globally. High energy prices have stimulated significant increases in oil production capacity in OPEC, and falling prices for alternative energy sources will decrease prices even more. Places such as Saudi Arabia will be deploying advanced solar power technology, technology that is being pushed forward by computational chemistry and supercomputers, to lower their internal oil demand - thus freeing up more cheap oil for export. State support for advanced energy in places like Germany will only accelerate these trends.
What little price inflation there has been comes mainly from wealth impacts caused by inflated stock markets. High levels of investment and still higher productivity will dissipate that force.