In February, consumer prices rose 0.76% over the previous month, which followed the virtually flat result recorded in January. The monthly reading reflected a surge in household operation costs (+38.38% month-on-month) as nurse and maid service costs shot up during the Chinese New Year Festival. As a result of the pronounced price increase in February, annual headline inflation rose to 1.3% from 1.1% in January, which was just in line with market expectations. Meanwhile, the core inflation index, which excludes volatile categories such as fresh food and energy, rose 1.02% over the previous month. Nevertheless, annual core inflation remained at January's 0.8%, and annual average headline inflation was also unchanged at January's 1.0%. In order to stem inflationary pressures, the government proposed a ?luxury tax? on investment housing and luxury items on 10 March. The proposal aims to impose a 10% - 15% tax on properties sold within one to two years of purchase and still requires approval by parliament. However, given the government's large majority in the legislature, the bill is likely to be approved and enter into force on 1 July. Perng Fai-nan, Central Bank Governor, favoured the initiative, stating that the tax will be more effective in curbing property prices than monetary policy alone. The government expects inflation to average 2.0% in 2011.
Government proposes luxury tax as inflation accelerates in February
March 7, 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.