If you thought deflation was bad enough...

[tinhat]

... wait until you read about disinflation.

A giant wave of disinflation is hitting the world...

http://www.marketwatch.com/story/dont-be-fooled-by-market-euphoria-2013-05-15

Actually, I've never heard of the term before but it is in investopedia:
http://www.investopedia.com/terms/d/disinflation.asp

The author doesn't go on to explain exactly why low inflation is bad for the economy other than that it might lead to deflation.

 

[Zedd]

You've prompted me to look into it more but off the top of my head the arguement for targeting a "reasonable" level of inflation is so employers can reduce wages in real terms using inflation by freezing wages rather than having to go around with pay cuts.