I have checked the statistics in page 10 of that report, and yes its a big decline, but it seems to include all goods and only small business. Its interesting data, but it does not represent the whole thing.
And I am not denying there are deflationary presures. I believe the deflationary correction is going to start showing again (its already showing) until the Fed starts printing again on what its being called Quantitive Easing 2. Then prices will start rising again and heavily. Note that I am saying that prices will rise, not that the economy will recover, therefore stagflation.
People always complain about CPI's measures. I think its important to understand what it does and does not include, but not very helpful to worry about if its value is a full picture. Certainly the price of oil is having a dramatic effect on consumer goods and its hard to know if this will become a permanent increase in cost.
I've not heard that the Fed plans to induce the Treasury to print any more money for QE2. There is certainly worry that the government's debt load is coming unbalanced and that may provoke some politicians to take drastic action and demand printing. I still trust that having come this far, the Fed will persevere and maintain order.