Taiwan: Consumer prices record largest drop in over five-years on low oil prices
February 5, 2015
Consumer prices in January decreased 1.24% over the previous month, which followed December’s 0.35% fall. According to the Directorate-General of Budget, Accounting & Statisics (DGBAS), the reading mainly reflected significant drops in the prices for fuels and lubricants, as well as for water, electricity and gas. The large drops registered in these categories resulted from lower global oil prices and a rebate given by the Taiwan Power Company to over 11.7 million households and businesses in January.
Annual consumer prices swung from a 0.6% rise in December to a 0.9% decrease in January, which marked the largest fall since November 2009. The decrease was unexpected as market analysts had predicted a gain of 0.3%. As a result, annual average inflation fell from December’s 1.2% to 1.1%.
Core consumer prices, which strip out prices for electricity and fresh food, fell 0.03% in January over the previous month, which followed December’s 0.06% drop. Annual core inflation fell from December’s 1.4% to 0.6%, which marked the lowest reading in almost one-year.