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U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
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Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
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Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
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.
