An article in Espresso by the Economist commented on possible deflation occurring in the American economy with the now lower prices of fuel. I believe that some deflation is necessary and will give the overall economy more of a boost to grow growth and stabilize prices, possibly allowing more production to happen with less cost and increasing demand.
However, the article is right to point out that extended periods of deflation are bad because they cause consumers to hold off spending, anticipating lower prices. I think that lower prices in the short run is what is needed in order to keep things affordable in the marketplace, but that's just me.