East Asia Econ

East Asia Today

Today's main release was PPI in Japan, with the most interesting takeaway being higher export prices. In Korea, weekly prices show food and energy inflation softening so far in February. Data in China show interest rates for mortgages stabilising, but continuing to decline for firms.

Paul Cavey

Feb 12, 2026 • 2 min read

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Japan – import prices up, but export prices up more

Import prices aren't rising quickly, but they do remain elevated, supporting PPI in a way that wasn't true during Japan's long deflation. More interesting now is the strength of export prices, a dynamic that boosts exporter profits, and via the terms of trade, provides a tailwind for domestic income

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East Asia Today

China's CPI inflation dipped in January, but that was holiday-related. PPI,by contrast, rose MoM for the second consecutive month. Labour market data in Korea isn't getting worse, but is sluggish. By contrast, Taiwan wage growth in 2025 reached the highest since 2000. Also today, my latest video.

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China – PPI up again

CPI inflation softened in January, but it always does when the new year holiday falls in February. PPI has less seasonal distortion, and rose MoM in January for the second consecutive time. The GDP deflator is likely to improve again in Q1. This is about external factors, but deflation is lessening.