The strong inflation of asset prices in the region in recent years can be contracted with the weak inflation of consumer prices. Whereas the strong performance of many Asia Pacific real estate markets over the past five years has in large part been boosted by capital value appreciation, in this issue we focus more on CPI and what it may imply for income growth. With oil proces falling below 30/baarrel in mid January, levels not seen in over a decade, CPI will likely remain low, at least for this year. Low oil prices should be good for most consumers, producers, and business overall. Three of the iggest economies in Asia Pacific – namely China, Japan and South Lorea – combined, make up the world's largest net oil importer. The low proce for oil and other commodities compounds the low inflation rates accross APAC as they are a major input in the economy.
Source : CBRE Global Investors