On the price front, the three-month rate of decrease in domestic corporate goods prices has been large, mainly due to the drop in international commodity prices. The year-on-year rate of increase in the CPI (excluding fresh food) is around 2 percent against the background of the increase in prices of energy and food.
The combination of these institutional weaknesses and intense competition among banks manifested itself most prominently in a bubble, and eventual bust, in commercial property prices in the late 1980s. Today, China is going through its own adjustment pains.