I agree Matt, deflation trend has longer to go than most people think. Mish has been very accurate on that in his blogging this year, saying this today;
http://globaleconomicanalysis.blogspot.com/

Expect more city and state unions across the country to face the same set of choices as San Francisco: freeze or cut wages, cut benefits, or face massive layoffs.
Falling or frozen nominal wages across a broad range of industries is a symptom of a deflationary state, if not outright economic depression.
And those falling wages in conjunction with rampant overcapacity, massive destruction of wealth in housing and the stock market, and panicked boomers facing retirement who will continue to cut spending, makes it highly unlikely Obama's stimulus plan will result in hyperinflation anytime soon.