Taiwan: Inflation drops in July
August 5, 2011
In July, consumer prices dropped 0.29% over the previous month, contrasting the 0.61% increase recorded in June. The monthly reading reflected lower prices for food and clothing, which more than offset higher prices for education and entertainment. As a result of the price decrease in July, annual headline inflation stepped down from 1.9% in June to 1.3%, well below market expectations, which saw inflation remaining stable at 1.9%. Meanwhile, the core inflation index, which excludes volatile categories such as fresh food and energy, decreased 0.04% over the previous month. As a result of the monthly drop, annual core inflation inched down from 1.2% in June to 1.1% in July. However, annual average headline inflation remained unchanged at June's 1.1%. The government expects inflation to average 1.9% in 2011.