Taiwan: Consumer prices drop for first time in over a year
March 6, 2020
Consumer prices decreased 1.08% in February compared with the previous month, contrasting January’s revised 0.61% increase (previously reported: +0.59%). The reading was driven by lower prices for nursery and nursing care, fruit, entertainment, and transportation—likely reflecting slumping demand following Chinese New Year holidays in the prior month.
Core consumer prices, which exclude prices for energy, fruits and vegetables, decreased 0.8% month-on-month in February contrasting the 0.7% increase recorded in January.
In year-on-year terms, meanwhile, consumer prices fell 0.2% in February, swinging from the 1.9% increase observed in January and marking the first drop in prices since December 2018. Lastly, annual average inflation remained at 0.7% in February, unchanged from the previous month.
Author: Stephen Vogado, Economist