In December, consumer prices fell 0.74% over the previous month, which contrasted the 0.21% price rise recorded in November. The lower reading reflected falling prices for vegetables (-27.54% month-on-month), due to abundant harvests, as well as lower prices for clothing (-2.53% mom). Owing to the pronounced price drop, annual headline inflation fell from 1.5% in November to 1.3% in December, contrasting market expectations that had inflation rising to 1.8%. Meanwhile, the core inflation index, which excludes volatile categories such as fresh food and energy, was virtually unchanged, dropping a meagre 0.06% over the previous month. As a result, annual core inflation remained unchanged at November's 0.9%, while annual average headline inflation increased from 0.8% in November to 1.0%. The Central Bank raised the discount rate at its latest quarterly policy meeting held on 30 December, in a move widely expected by market analysts. The Bank lifted the policy rate by 12.5 basis points to 1.625%, arguing that the economy was performing better than expected amid strong exports and investment. In addition, the higher rate should curb asset-price inflation, particularly home prices. The government expects inflation to average 1.85% in 2011.
Inflation declines in December
January 5, 2011
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Taiwan Economic News
October 9, 2016
In September, the trade surplus totaled USD 4.4 billion, according to data from the Ministry of Finance.
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.
October 3, 2016
Taiwanese manufacturers registered better business conditions for the fourth consecutive month in September.
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.
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.