Recent declines in consumer and producer prices in China also reflect the impacts of global competition. This situation serves as an important indicator of the overall health of the economy.

According to the National Bureau of Statistics of China, the Consumer Price Index (CPI) decreased by 0.1% compared to the same period last year, while the Producer Price Index (PPI) fell by 3.3%. This indicates a continuing trend of deflation.

Consumer prices have been close to zero for 27 months. Core inflation, excluding food and energy prices, recorded an increase of 0.6%. This indicates a slowdown in consumer spending.

Producer prices have been declining for 32 months. Weak domestic demand and the debt risks of local governments are among the factors negatively affecting the Chinese economy.

Due to the ongoing deflation trend, the Chinese government has lowered its inflation target to 2% this year. This situation becomes increasingly significant with the rise of global competition.