Dr. Zheng Lei believes that there are signs of "deflation" in the general commodity market and suggests that the authorities adopt measures such as stimulating consumption:

CPI turned negative in November. Some people think it is deflation. This judgement is not accurate. It should be deflation in the general commodity market, while the overall financial asset market is inflationary. The main decline was the price index of food, clothing, housing and daily necessities. It is necessary to further observe whether the quantity of consumption is also decreasing. The PPI also experienced a year-on-year decline and a weak month-on-month rise, showing signs of deceleration in the real economy. Macro policies need to be fine-tuned, and measures can be taken to improve residents' consumption capacity (the digital RMB issuance pilot can be appropriately expanded), and new infrastructure construction in 2021 can be arranged in advance.