In February, China reported a significant decline in consumer prices, marking the first time inflation turned negative in over a year, with the Consumer Price Index (CPI) down 0.7% year-on-year. This drop reflects waning demand amid a sluggish economy and highlights the deepening deflationary pressures the country is experiencing. Experts warn that the ongoing consumption slump, exacerbated by holiday effects and trade threats, signals a prolonged battle with deflation. The situation raises concerns about the potential for a prolonged recession and underscores the challenges facing Beijing as it grapples with falling prices and stagnant economic growth.