That is an effect, it also increases the relative value of debts which isn’t great, but the negative impacts of those is less than the potential positive impact of reducing the relative cost of living. Really what you’ve got to focus on if you’re a government trying to manage deflation is a) capital flight and b) wage reduction, because the biggest negatives are seen if investment gets pulled out of the economy and the positives aren’t realized if people’s wages don’t stay the same.
My man found out the hard way about depreciation. All my life people have said never to buy a new car because it loses 20% of its value the moment you drive it off the lot. If you really want to drive new cars the best way to do it is lease and change every couple of years (this is still not financially sound, just better than buying new).