2023 Mid-Year Economic and Market Outlook Report
In Japan, inflation is the highest it has been in several decades, with headline inflation at 3.5% and core at 4.1%. Here, it’s especially notable as it’s happening alongside increases in both wage growth and inflation expectations, raising the probability that Japan has at last exited its long period of deflation. If confirmed, the BoJ would need to begin unwinding its ultra-loose monetary policy. In China, inflation is very low, with the headline reading at 0.1% and core at 0.7%; unemployment is higher than normal, keeping wage growth low. Inflation is...