I'm no economist but I've read the work of economists unafraid of deflation -- economists like Thomas E. Woods make good points regarding free market deflation. Deflation caused by Fed policies, of course, could spiral out of control, but improvement in productivity and efficiency that drives down prices is good for workers, and everyone, in the long run.
The ingrained idea of higher and higher prices and wages has been artificially stimulated by the Fed mentality, in spite of their ostensible mission to control inflation, and unions which see rising wages always as a sign of progress. But what is more important than higher wages is what the dollar can buy and companies' competitive position in the global market. Government intervention in the economy has caused higher food and gas prices, but without these inflationary realities, falling prices, and even relatively lower wages, could be seen as a major accomplish in the market, if we change our inflationary mindset. Allowing prices to follow economic realities is much better than government manipulation of the economy which has failed miserably.