Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations 
Asian Stocks Waver as Trump Signals Fed Pick, Shutdown Deal and Tech Earnings Stir Markets 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
China’s October Inflation Slowdown and New Stimulus: What to Expect
Overview
In October, China's consumer prices rose at the slowest pace in four months, while producer price deflation worsened, underscoring ongoing economic struggles. To counter this, China's National People's Congress approved a $1.4 trillion package on Friday to address local government debt. However, direct economic injection was limited, leaving analysts skeptical about immediate improvements in demand and pricing.
October Price Data
The National Bureau of Statistics reported that the Consumer Price Index (CPI) rose by 0.3% year-over-year, down from 0.4% in September, falling short of analyst predictions. Core inflation (excluding food and fuel) saw a modest increase of 0.2%, up from 0.1% in September, reflecting mild consumer spending.
Economist Bruce Pang noted that October’s “Golden Week” holiday affected the perceived impact of recent stimulus, with expectations for gradual CPI growth. Meanwhile, China’s central bank has hinted at further rate cuts in early 2025 to encourage spending.
Producer Price Deflation Deepens
Producer prices, a marker of factory inflation, fell by 2.9% annually in October, hitting the largest drop in nearly a year. Key sectors like petroleum, coal processing, and automotive manufacturing experienced intensified deflationary pressures.
Outlook for Economic Support
Despite Friday’s stimulus approval, some analysts are concerned about the limited measures to spur consumption. Finance Minister Lan Foan announced additional policies, including tax breaks for housing, aiming to stabilize core industries like real estate, where 70% of Chinese household wealth is concentrated.
The road to economic recovery is likely to be gradual, with further support anticipated for 2025.
For further reading, check out these sources:
