So much for inflation

Apparently QE III is in the cards:

In an effort to thwart counterfeiting, the US Government has implemented a $100 bill design so difficult to print even the U.S. Treasury cannot print them. The government needs to burn $110 billion in flawed $100 bills, more than 10% of all existing cash. The cost of printing the flawed bills was a mere $120 million.

If inflation is derived from the money supply, then burning 10% of the the entire currency stock should cause prices to fall, right? Given the current M2 figure of $8,767 billion, this bonfire of the Franklins should result in an immediate 1.3% reduction in the rate of inflation.