Taiwan Inflation


Inflation bucks downward trend in December

In December, consumer prices added 0.25% over the previous month, which contrasted the 0.76% price drop recorded in November. The monthly rise was mostly the result of higher prices for vegetables, which soared 18.26% over November, offsetting lower prices for fruits as well as for clothing.

Annual headline inflation remained unchanged at 1.6%, which surprised the market on the upside, as analysts expected inflation to ease to 1.4%. Meanwhile, the core inflation index, which excludes volatile categories such as fresh food and energy, was virtually unchanged over the previous month (-0.02% month-on-month). Nevertheless, annual core inflation inched up from 1.0% in November to 1.1% in December.

Overall, inflation averaged 1.9% in 2012, which came in above the 1.4% tallied in 2011 but was in line with government's objective of keeping inflation at below 2%. Against this backdrop of relatively moderate inflation, at its latest policy meeting on 19 December, the Central Bank left the discount rate unchanged at 1.875%.


Sample Report

Looking for forecasts related to Inflation in Taiwan? Download a sample report now.


Taiwan Inflation Chart

Taiwan Inflation December 2012

Note: Monthly and annual variation of consumer price index in %.
Source: Directorate-General of Budget, Accounting & Statistics (DGBAS) and FocusEconomics calculations.

Taiwan Economic News

  • Taiwan: Exports fall and trade surplus narrows in September

    October 9, 2016

    In September, the trade surplus totaled USD 4.4 billion, according to data from the Ministry of Finance.

    Read more

  • Taiwan: Inflation moderates further in September

    October 5, 2016

    In September, consumer prices increased 0.45% over the previous month, which was a rebound from the 0.03% fall recorded in August.

    Read more

  • Taiwan: Manufacturing PMI hits two-year high in September

    October 3, 2016

    Taiwanese manufacturers registered better business conditions for the fourth consecutive month in September.

    Read more

  • Taiwan: Central Bank halts easing cycle on healthy economic growth

    September 29, 2016

    At its quarterly monetary policy meeting on 29 September, the Central Bank of the Republic of China (Taiwan) decided to leave the discount rate unchanged at 1.375%, which was a decision that markets had expected, although some analysts had foreseen a further reduction to the key policy rate. The Central Bank has cut the main monetary policy rate four times since September 2015 by a total of 50 basis points and this time the authority decided to leave interest rates unchanged “against a back drop of moderate global growth and renewed momentum for the domestic economy, along with a mild inflation outlook for next year.” Regarding global developments and how they affect the Taiwanese economy, the Central Bank stated that the global economy continues to decelerate as a result of slower economic growth in the U.S., a still tepid recovery in the Eurozone economy and sluggish economic activity in Japan.

    Read more

  • Taiwan: Industrial production benefits from Apple’s new iPhone debut

    September 27, 2016

    Taiwan’s industrial output increased substantially in August, backed by a base effect but also due to strong growth in semiconductor manufacturers’ output, which benefited from the debut of Apple’s latest iPhone model.

    Read more

More news

Search form