• CS say in a recent report there is a strong correlation between rising import prices – the driver of CPI gains – and the weakening yen.
• They allude to the fact that if the yen weakening stalls, so will the gain in the CPI.
• Say unless there is a major upshift in wages or the unit labor cost, headline CPI inflation is likely to start dropping by the middle of 2014
• Says the BOJ will not wit until there is a drop in demand to ease further
• Says further easing could come as early as the February 17-18 or March 10-11 meetings