Bloomberg explained why deflation is harmful for economy

[Bloomberg] China is facing longest deflation streak since Mao era in 1960s:

"Deflation can be a silent killer of commerce and consumption over the long haul. Even though cheaper goods may seem appealing, the danger is people could delay purchases because they expect prices to fall further.

Weaker consumer spending would then erode income for businesses, which in turn would reduce hiring and investment — resulting in a vicious cycle."