Core Viewpoint - The Consumer Price Index (CPI) in China showed a year-on-year increase of 0.2% in October, indicating a shift from decline to growth, with a month-on-month increase of 0.2%, reflecting an expanding upward trend [1]. Group 1: Factors Supporting CPI Increase - Service prices have seen an expanded increase, with a rise of 0.8% in October, up 0.2 percentage points from the previous month, driven by increased tourism and cultural consumption during the holidays [3]. - Industrial consumer goods prices have rebounded, with a 2.0% increase in October, marking six consecutive months of growth, supported by policies promoting new consumption [4]. Group 2: Economic Indicators - The improvement in CPI is attributed to a better market supply-demand relationship, supported by stable economic performance, as indicated by a 4.9% year-on-year growth in industrial added value and a 2.9% increase in retail sales of consumer goods [6]. - The trend of consumption upgrading is evident, with service retail sales growing by 5.3% in the first ten months, outpacing the growth of goods retail sales by 0.9 percentage points [8]. Group 3: Policy Impact - The increase in CPI is also linked to effective macroeconomic policies, including initiatives to boost consumption and promote the replacement of old consumer goods, demonstrating the strong efficacy of these policies [9]. - Recent measures include the introduction of 500 billion yuan in new policy financial tools to enhance local government finances and stimulate effective investment, alongside 13 policy initiatives aimed at invigorating private investment [9].