Taiwan: Inflation accelerates slightly in January
February 6, 2014
In January, consumer prices increased 0.24% over the previous month, which contrasted the 0.10% decrease tallied in December. According to the Directorate General of Budget, Accounting and Statistics (DGBAS), the monthly increase in consumer prices reflected a rise in prices for nursery and taxi fees during the Lunar New Year festival, which more than offset a sharp decrease in prices for vegetables.
Annual inflation increased from 0.3% in December to 0.8% in January, which was above the 0.6% rate the market had expected. Annual average inflation was unchanged over December's 0.8% and rests at the lowest level since October 2010.
The core inflation index - which excludes volatile categories such as fresh food and energy - registered a 0.60% increase over the previous month (December: -0.01% month-on-month). Annual core inflation increased to 1.0% in January, which was up from the 0.2% tallied in December.
FocusEconomics Consensus Forecast panelists expect inflation to average 1.5% in 2014, which is unchanged from last month's forecast. For 2015, the panel sees inflation increasing to 1.8%.