Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
China Factory PMI Seen Returning to Growth in June as AI Export Demand Supports Economy 
Gold Prices Rise Above $4,000 as Inflation Data and Weaker Dollar Boost Demand 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
China's consumer price index (CPI) fell 0.7% in February, marking the steepest decline in 13 months and reversing January’s 0.5% rise. The drop exceeded economist forecasts of a 0.5% decline, reflecting weak domestic demand as households remain cautious amid job and income concerns. Core CPI, which excludes food and fuel, dipped 0.1%, the first decrease since January 2021.
Food prices plummeted 3.3% compared to a 0.4% rise in January, influenced by the timing of Lunar New Year celebrations. On a monthly basis, CPI fell 0.2%, missing expectations of a 0.1% drop. The producer price index (PPI) declined 2.2% year-on-year, marking the 18th consecutive monthly fall.
China's government maintained its 2025 GDP growth target at 5% while lowering the annual inflation target to 2% from 3%. Beijing has pledged stronger measures to boost consumption, including expanding a consumer subsidy program to 300 billion yuan ($41.42 billion) for electric vehicles and home appliances. However, structural issues in welfare and employment continue to weigh on spending.
Economists warn that China’s economy faces persistent deflationary risks. Zhiwei Zhang, president of Pinpoint Asset Management, noted that while sentiment improved in the tech sector, weak domestic demand remains a challenge. Analysts suggest more aggressive fiscal and monetary policies, including interest rate cuts, to stimulate growth.
Meanwhile, global trade tensions and industrial overcapacity are forcing Chinese exporters into price wars, further pressuring the economy. As deflation lingers, concerns grow over China's ability to sustain a steady economic recovery.
