China's inflation rate has dropped to a two-year low, with a year-over-year increase of 0.1% in April, down from 0.7% in March. The decrease in prices is partly due to a drop in food and beverage prices, and there are concerns about the potential dangers of deflation. Despite efforts made, China's current inflation rate is still below the targeted 3% for the year, indicating an uncertain outcome. Some experts have proposed measures to counter deflation, such as distributing cash handouts to citizens to boost demand.