Wages are shrinking. Spending is down. This met the definition of deflation, which is two consecutive years of decline. No one is sure what comes next because no one has been here before. Even the United States depression of the 30s did not see such a sharp rise and protracted fall.
Deflation creates a world in which common sense turns upside-down and the wrong way round.
It is also reflects the dark conviction that things can only get worse. The central bank's zero interest rate policy attracts few takers for loans. In the looking-glass world of deflation, nothing ventured is something gained. If you expect prices to fall rather than rise, procrastination becomes a virtue. In the 80s it was monetary steroids, not hot air, that pumped up prices.