I don’t know about “baked in,” but of course the USD is inflationary: that’s been the explicit Fed policy for decades. It’s been the policy because small amounts of inflation have a measurable economic benefit.

But again: this doesn’t change the fact that Bitcoin is deflationary. It’s a fixed supply of coins on a ledger that every current stakeholder has a strong deflationary interest in. The fact that there might be inflationary forces internal to Bitcoin’s economy doesn’t change that.