You actually, unknowingly, may be the one who's making it into a competition. It may be because you just had your first child, and usuallly it's assumed that you get tons of attention from it, especially from the grandparents. Your father and his wife are probably just innocently asking questions. I mean, if they didn't have a little one of their own, they'd still ask what all your baby was doing. They'd still want to know when they were rolling over, sitting up, crawling, etc.... That's what grandparents do, they ask the progresses of their grandchildren. People are telling you to change the subject? Give me a break! These are things that new mothers are asked by perfect strangers even! In lines at grocery stores, a lady may be in front of you with a baby who looks to be the same age as yours and say "oh, is he about 5 months old too? Is he sitting up by himself yet?" What are you going to say "I don't feel comfortable talking about this?" because you feel like she's competing with you? This is "new baby talk" it is not about who's baby is smarter or more developed. I think too many people are being too sensitive here and they're telling you that it's okay to be sensitive, but really, all it's doing is wasting energy of yours. It takes more energy to be upset about something than it does to just answer the questions without taking it the wrong way.
I say all of this because in my family, we have the same type of situation. My mother had a baby with her second husband, then my sister had a baby about 2 years later, then mom again about a year later, then my sister had her second child, and 11 months later I had mine. My second child was then born 5 weeks after her third. We were always asking each other if the other's child was doing something yet. It wasn't because we were in competition. I actually thought it was awesome that we were having kids at the same time so that could have a playmate at family gatherings.
I'm definitely not trying to make you feel that what you're feeling is wrong, but first time mothers can tend to crave all the attention and when they don't get it, sometimes they place blame on something that just wouldn't be an issue if it were happening at a different time without a new baby around. So, just enjoy it. This time of your child's life will be gone in a blink of eye, no joke. At their first birthday you will freak out because it feels like only 2 months have gone by. So, focus on what's really important. Besides, they're not "competing" with you, and if they say things like "well, ours has been doing that for 2 weeks", it doesn't mean they're saying it in a competitive way necessarily, it is just conversation. I mean, new parents eat, drink, and breathe their new babies. When it comes to babies though, what really is there to talk about? It's all of their milestones, that's it. Unless you want to talk about poopy diapers and breastfeeding. Try to look at it with less emotion, and enjoy them having a baby at the same time! It's awesome at family get togethers, trust me!!!!!!
By the way, it really disappoints me that people are telling you that they are disappointed that their own parents have children (like my mother does also, she has a 13 and 10 year old now), and aren't able to spoil your children as grandparents because of this. This is ridiculous! I mean, to me, this is immature. If it's so important to you to have someone spoil your children, which you shouldn't want them spoiled anyway, then spoil them yourselves. My mother loves my kids so very much, and yes she doesn't get to buy them things all the time because she has two of her own she's raising, but my kids adore her and that's all that matters to me.