Core Insights - China's consumer price inflation rose to 0.7% in November, the highest level since February last year, while producer prices fell by 2.2%, indicating ongoing economic challenges [2][3][4] Economic Indicators - Consumer prices increased by 0.7% year-on-year in November, following a 0.2% rise in October, aligning with economists' expectations [2] - Producer prices experienced a decline of 2.2% in November, extending a deflationary trend into its fourth year, compared to a 2.1% drop in October [2] Economic Outlook - Economists predict that deflationary pressures will continue into the next year due to a prolonged housing downturn and weak labor market conditions, necessitating new policy measures to stimulate demand [3] - Despite a slowdown in the economy, China is on track to meet its annual growth target of "around 5%" for the year, bolstered by strong exports to non-U.S. markets [4] Policy Priorities - The Politburo has identified expanding domestic demand and rebalancing supplies as key economic priorities for 2026 [5] - Policymakers are expected to maintain an easing bias but may be less inclined towards broad-based stimulus measures, indicating a need for stronger pro-growth policies next year [6] Upcoming Events - Investors and economists are closely monitoring the upcoming Central Economic Work Conference, where key growth targets and policy priorities for the next year will be established [7]