The news
Consumer prices in China saw their slowest growth in months in September, according to new consumer price index data that showed a 0.4% increase in August, lower than analysts’ expectations. Producer prices also fell compared to the same period last year, raising fears that deflation could become increasingly entrenched.
While China’s central bank proposed an aggressive intervention program, temporarily boosting stock markets, analysts have warned that such stimulus alone “will never be strong enough to revive the economy.” Many economists expect a fiscal stimulus of between 1 trillion and 3 trillion yuan, while some hope for as much as 10 trillion yuan. Many analysts noted that details on the size of the country’s proposed fiscal stimulus plan were “conspicuously missing” during a Saturday press conference with China’s finance minister on the new data.
Some financial experts believe China will “announce” the details when the country’s top legislative committee meets again later this month, The Wall Street Journal reported.
