Taiwan: Inflation at 16-month low in June
July 5, 2013
In June, consumer prices rose 0.50% over the previous month, which was well above the 0.19% rise recorded in May. According to the Directorate General of Budget, Accounting & Statistics (DGBAS) the monthly increase was mostly the result of higher prices for electricity.
Annual headline inflation slowed down from 0.7% in May to 0.6% in June. The print was in line with market expectations and marks the lowest level seen since February 2012. Meanwhile, the core inflation index - which excludes volatile categories such as fresh food and energy - rose 0.12% in June (May: -0.22% month-on-month). Nevertheless annual core inflation remained stable at May's 0.6%.
FocusEconomics Consensus Forecast panellists expect inflation to average 1.6% in 2013, which is down 0.1 percentage points from last month's forecast. Next year, the panel sees inflation inching up to 1.8%.