NOV 09, V7N- China's consumer inflation rate slowed further in October, with the Consumer Price Index (CPI) rising just 0.3% year-on-year, down from 0.4% in September. This was below the 0.4% forecast from economists, indicating that demand in the world’s second-largest economy remains weak. The slowdown in inflation comes amid ongoing efforts by Chinese authorities to stimulate domestic activity, especially as a property crisis continues to undermine consumer and business confidence.

While many Western economies are grappling with high inflation, China has been dealing with low or even negative prices in recent months. The country experienced deflation at the end of 2023, marking the sharpest decline in consumer prices in 14 years in January. Factory-gate prices continued to drop, falling 2.9% in October, extending a deflationary trend that began in late 2022.

In response, the Chinese government has implemented several measures to stimulate the economy, including interest rate cuts and easing restrictions on home purchases. However, analysts have expressed frustration over the lack of concrete details about these policies. Despite the challenges, Premier Li Qiang remains optimistic, expressing confidence that China will achieve its growth target of around 5% for 2024, even though the country saw its slowest growth in over a year and a half in the third quarter.

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