The article examines how changes in the value of China's currency, the RMB, affect prices in the country. By analyzing data from 2005 to 2016, the researchers found that an increase in the RMB's value leads to a decrease in the consumer price index. Import prices react quickly to currency changes, while producer and consumer prices adjust more slowly. Overall, the RMB's exchange rate has a self-correcting mechanism on China's price index.