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China's Consumer Prices Plummet
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China's Consumer Prices Decline
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China's consumer prices plummeted in November, reaching their lowest level in three years, while factory-gate deflation intensified. Despite expectations of inflation, core inflation remained stagnant, reflecting challenges in reviving demand. The economic slowdown is attributed to mounting local government debt, a struggling housing market, and weak domestic and foreign demand.
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How could the economic slowdown in China affect global financial markets and investor confidence?
How might the intense factory-gate deflation impact China's global supply chains and trade relationships?
What measures could the Chinese government take to address the mounting local government debt and stimulate the economy?
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