Taiwan: Consumer prices falls at milder pace in June
July 7, 2020
Consumer prices rose 0.79% in June over the previous month, swinging from May's 0.11% fall. June's figure marked the sharpest increase in prices since February 2019. The rebound was largely broad-based with greater price pressures for food, housing, and transportation. Prices for education and entertainment goods also gained steam.
Core consumer prices—which exclude prices for energy, fruits and vegetables—rose 0.12% in June in month-on-month terms, having fallen 0.15% in May.
Consumer prices declined 0.8% year-on-year in June, softening from May’s 1.2% fall. Meanwhile, the trend pointed down slightly, with annual average inflation coming in at 0.2% in June (May: 0.3%).
FocusEconomics Consensus Forecast panelists expect inflation to average 0.0% in 2020, which is down 0.1 percentage points from last month’s forecast. In 2021, the panel sees inflation averaging 1.0%.
Author: Stephen Vogado, Economist