I've never understood why deflation is such a bad thing. Sure in larger levels the old arguments deferred consumption kicks in but as lower 1-2% levels this could be a good thing is we have some years of small increases with others offset by smaller decreases.

I think govt chases low inflation so hard as it 1) business looks its growing more than it is and 2) helps them manage budgets better. Whereas for the majority a stable situation would be better.