Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
China’s Economic Stimulus: $1.4 Trillion Debt Relief Amid Slowing Inflation
In October, China’s consumer prices grew at a slower pace, while deflation deepened in its manufacturing sector. This economic slowdown has led Beijing to intensify stimulus measures, aiming to stabilize its economy.
Slowing Inflation and Rising Deflation
According to China’s National Bureau of Statistics, the consumer price index (CPI) in October rose just 0.3% year-over-year, down from September’s 0.4% increase and the lowest growth rate since June. This fell short of the 0.4% forecast by economists in a Reuters poll, while on a month-to-month basis, CPI dropped by 0.3% after remaining flat in September, below the projected 0.1% decline.
The producer price index (PPI), which tracks factory-level inflation, decreased by 2.9% year-over-year, marking a deeper drop than the 2.8% decline in September. This figure also fell short of the expected 2.5% decline, signaling increasing deflationary pressure on Chinese manufacturers.
Government’s $1.4 Trillion Debt Relief Package
China has announced a 10 trillion yuan ($1.4 trillion) package focused on reducing "hidden debt" among local governments to combat these economic challenges. Rather than injecting liquidity directly into the economy, this package seeks to provide structural debt relief, allowing local governments more financial flexibility to support economic activity without adding further inflationary pressure.
Conclusion
With consumer prices slowing and producer deflation deepening, China's economic outlook remains uncertain. However, this significant debt relief measure reflects Beijing’s commitment to tackling underlying fiscal pressures to stabilize growth.
