Apart from exports, China’s other main growth engine has been its high levels of investment which has contributed to excess capacity in some key sectors such as steel (figure 5). This capacity expansion has had a restraining effect on prices of industrial materials and, in turn, a wide range of manufactured goods.
3 / 12  BIS central bankers' speeches  A third factor contributing to low global inflation is the rise of the digital economy. Prices of ICT goods and services (Information, Communications and Technology) have fallen world-wide, as unit costs have fallen and supply has expanded.