Regional Inflation Update Amid Price Wars, Tariffs

US tariffs are seen as broadly inflationary at home and disinflationary abroad, so countries across Asia – where central banks have already begun a cycle of easing – face increased pressure on economic growth and prices.

The levies loom at a time when China is mired in deflation, and Japan is trying to reinflate prices that are also weak in other Asian economies. Should investors be worried about disinflation across the region? How will that influence central bank decisions? And does it complicate the path forward for Japan's policymakers?

Gareth Leather, senior Asia economist at Capital Economics, joins John and Katia to discuss China's overcapacity, the government's failure to address the issue, how it could export deflation to the region, and Japan's success at engineering price growth.

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