Japan – waiting for hospitality The Tankan points to GDP growth remaining tepid. It does, however, confirm other data showing services price inflation is beginning to emerge. That seems likely to at least persist as Asia opens up after covid, challenging BOJ claims that inflation in Japan is all about energy prices.
Japan – still sluggish Japan's cycle remains sluggish, partly because of import price inflation, though that receded in November. In theory, post-covid opening up of the economy should add momentum to the modest wage and service price inflation being seen. But that feels optimistic given softening business sentiment.
Japan – incrementally stronger wages Modest wage growth is gradually accelerating. Labour market dynamics are consistent with that continuing. There is upside risk, but that remains the same as it has been the last few months: normalisation of the economy after covid.
