East Asia Econ

Japan – JPY matters more for CPI

The BOJ's full outlook report that was released today includes analysis arguing that the pass-through from JPY to CPI has risen, reflecting not only greater direct effects, "but also stronger secondary spillover effects, such as more active wage- and price-setting behavior of firms"

Paul Cavey

Jan 26, 2026 • 3 min read

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East Asia Today

An update on visitor arrivals across the region, the quarterly household, business and banker sentiment surveys from the PBC, and insights from the BOJ's full outlook report that was released today.

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China – the end of the flight to safety

Like the actual monthly deposit data, Friday's PBC Q425 depositor survey shows a slowing of the flood of household savings into the safety of bank deposits. The structural deflation pressure caused by the collapse of real estate activity and the chaos of the covid lockdowns is beginning to ease.

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Last week, next week

Is a ceiling forming for $Asia? Three developments are helpful: CNY fixing strengthening through 7; more US interest in Asia under-valuation; visible concern in Tokyo about weakness in both the JPY and JGBs.