East Asia Today

Inflation in the full Tankan was stronger than in the summary, and actual CPI for Tokyo for September showed signs of broadening too. Korea September CPI was also strong, though more cost-push than demand-pull. Taiwan's property market remained weak in September. However, sales are up from the lows.

Paul Cavey

Oct 2, 2026 • 2 min read

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Japan – stronger inflation

I have been thinking that underlying inflation remains modest compared with headline. That is still true, but today's inflation data were strong. Tankan price measures for all firms were firmer than for large firms alone. And Tokyo September inflation was broad as well as strong.

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Korea – cost-push for now

Underlying inflation was firm in September, because of energy, and the surge in semiconductor prices raising the price of electronics devices. September data show the chip shock isn't over yet, and the BOK expects demand-pull inflation to also become more obvious in the coming months.

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East Asia Today

Japan's Tankan was strong enough for faster rate hikes, though likely not at the October meeting. Korea's positive terms of trade shock remains intense, with exports surging again in September. The details of Taiwan's PMI were weaker than the headline, but price pressures are rising again.