Taiwan: Inflation continues to fall
December 5, 2012
In November, consumer prices declined 0.76% over the previous month, which followed the 0.06% drop recorded in October. The monthly drop mainly reflected lower prices in most categories, in particular for food and education.
As a result of the monthly drop, annual headline inflation declined from 2.3% in October to 1.6%, undershooting market expectations of 2.0%. Meanwhile, the core inflation index, which excludes volatile categories such as fresh food and energy, fell 0.14% over the previous month (October: +0.93% month-on-month). As a result, annual core inflation remained unchanged at October's 1.0%. Finally, annual average headline inflation inched up to 2.0% in November from 1.9% in October.