Taiwan Inflation


Taiwan: Inflation accelerates in May

June 7, 2011

In May, consumer prices rose 0.18% over the previous month, only a fraction of the 0.79% increase recorded in April. The monthly reading reflected higher prices for clothing and food, which were partially offset by lower transport prices. In spite of the moderate price increase in May, annual headline inflation stepped up from 1.3% in April to 1.7%, which overshot market expectations of 1.6% and marked the fastest pace since February 2010. Meanwhile, the core inflation index, which excludes volatile categories such as fresh food and energy, increased 0.05% over the previous month, pushing annual core inflation from 0.1% in April to 1.2%. Annual average headline inflation was steady at 1.0% for the sixth consecutive month. The government expects inflation to average 2.1% in 2011.


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