East Asia Econ

China – back to rising PPI

The sharp rise in input prices in today's PMIs move China back towards rising YoY PPI for the first time since 2022. Usually, higher prices would boost PMIs too. With the rise in prices externally-driven, that is less likely now. But, I think some inflation does improve the macro cycle for China.

Paul Cavey

Mar 31, 2026 • 2 min read

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East Asia Today

Charts on the impact on CPI and fiscal positions of policies to control energy prices, the BOJ's updates of some of the core elements of its framework, and growth in Taiwan, which was very strong in 2025, but might have accelerated even further in early 2026.

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Region – policies to control energy prices

Some charts on regional energy supply and government attempts to cushion the impact of rising energy prices since 2022. Rough rule of thumb: spending 1% of GDP on energy subsidies leads to a reduction in headline CPI inflation of around 1ppt.

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Last week, next week

This week's three themes: 1) rising inflation despite government attempts to hold prices down; 2) growth that might be starting to wobble but hasn't clearly turned down yet; and 3) huge uncertainty about the direction of events in the Middle East.