Taiwan Inflation


Inflation reaches four-year high amid surging food prices

In August, consumer prices added 0.97% over the previous month, which was above the 0.38% rise recorded in July. The monthly increase mainly reflected a sharp rise in food prices, in particular prices for vegetables, which surged 28.5% over the previous month amid damages caused by recent typhoons. As a result of the sharp monthly rise, annual headline inflation jumped from 2.5% in July to 3.4%, exceeding market expectations of 2.6% and reaching, in fact, its highest level in four years. Annual average headline inflation rose from 1.5% in July to 1.7%. On the other hand, the core inflation index, which excludes volatile categories such as fresh food and energy, declined 0.21% over the previous month (July: +0.09% month-on-month). As a result, annual core inflation remained unchanged at July's 1.0%. The government expects inflation to average 1.9% this year.


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Taiwan Inflation Chart

Taiwan Inflation August 2012

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

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