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.
Inflation reaches four-year high amid surging food prices
September 5, 2012
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Taiwan Inflation Chart
Note: Monthly and annual variation of consumer price index in %.
Source: Directorate-General of Budget, Accounting & Statistics (DGBAS) and FocusEconomics calculations.
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.