Taiwan: Inflation accelerates in June
July 5, 2017
Consumer prices increased 0.76% in June compared to the previous month, which was well above the 0.10% increase recorded in May and marked the highest figure since October of last year. The result was driven by sky-rocketing prices of vegetables, which rose by nearly a third, and higher charges for water, electricity and gas supply. These increases offset a moderate drop in fuels and lubricants.
Inflation came in at 1.0% in June, the highest reading since January and above the 0.6% figure recorded in May. The largest contribution to the pickup in inflation stemmed from higher prices for food and a steady increase in healthcare fees. Moreover, annual average inflation was stable in June at May’s 1.0%.
Core consumer prices, which exclude prices for electricity and fresh food, eased 0.13% in June (May: +0.05%). Core inflation dipped from 1.1% in May to 1.0% in June.
Author: David Ampudia, Economist