Increases in M3 that are not present in M2 are by definition unable to affect inflation because they represent an increase in money that is locked up in long term deposits and thus unable to influence the real economy. Inflation occurs when too much money is chasing too few goods, and that doesn't happen in this case.
You are right to say that CPI is not all that useful as a measure of inflation. A better measure is the core CPI which strips out volatile commodity prices. (If the actual CPI that includes the cost of gas were to be used, we would be facing a massive deflationary spiral given the recent trend in oil prices.) Looking at core CPI trends that you'll notice that globalization, and automation have actually caused price decreases for many goods. (With some inflation in service industries not subject to competitive pressures such as healthcare and education.)
You are right to say that CPI is not all that useful as a measure of inflation. A better measure is the core CPI which strips out volatile commodity prices. (If the actual CPI that includes the cost of gas were to be used, we would be facing a massive deflationary spiral given the recent trend in oil prices.) Looking at core CPI trends that you'll notice that globalization, and automation have actually caused price decreases for many goods. (With some inflation in service industries not subject to competitive pressures such as healthcare and education.)