Deflation fearmongering is again raising its ugly head
Certain things just need to be repeated over and over again. The deflation fear has no ground in reality for a very simple reason: nobody has ever demonstrated that consumers tend to postpone any major or minor purchase because of expectation that price may drop 1% or 2% a year from now. Nor is it shown that such behavior would even be rational. After all, given the fact that the useful lifetime of the item from the consumer's standpoint cannot in any event exceed the consumer's remaining life expectancy, which is 40-50 years for the average consumer, a 1-year delay automatically subtracts at least 2% of the item's value, possibly much more for items whose utility is seen as likely to diminish over the time. As long as deflation does not exceed 2-3% a year, expecting consumers to choose delayed gratification is impractical, even if you happen to think that consumers are rational.