This is the crucial question people ask themselves. The rich, the poor, Americans, Asians, European, the old, the young.
Of course, it is of importance where you live since local fiscal politic issues play an important role - catchword "quantitative easing", i.e. printing money for example.
But what do we expect from the people what to do best? Well, I can tell what I would do. I would buy a house, in case I don't have one, and maybe a new car if the old one is wreck and if the price is good. But what else would I buy? Spending on expensive goods? Buying sports car, new mobile phone every year, a swimming pool, eating in restaurants, buying expensive clothes? I don't think so. Actually, I have started to save my money, e.g. saving gasoline. I prefer to buy goods that are on sale. I have even selled my complete long-term stocks.
But what can I expect from those who lost their jobs or pensions? Well, that's why deflation risk are still imminent. IMO, inflation is the issue if the economic situation is improving, and I mean improving because of innovations, new jobs, export sales and private consumption on the basis of long-term improved earnings. This might take years, maybe a decade. However, local exaggerations of quantitative easing and producing unnecessary debts may lead to inflation due to no longer currency confidence; but this should be a local phenomenon. So what is the answer to the question for the near term? OK just IMO. :-)