Lost/burned tokens are not included in deflation calculations. We don't include lost dollars in the USD inflation calculation (afaik). The amount of circulating

Lost/burned tokens are not included in deflation calculations. We don't include lost dollars in the USD inflation calculation (afaik). The amount of circulating Bitcoin in circulation increases due to mining rewards. Losing/burning coins should also become less notable over time as more people use better Bitcoin storage options, it's not built in to the protocol.