Taiwan Inflation


Taiwan: Inflation eases in April

May 5, 2011

In April, consumer prices rose 0.79% over the previous month, contrasting the 0.87% drop recorded in March. The monthly increase was mainly due to higher prices for clothing (+12.02% month-on-month). In spite of the pronounced price increase in April, annual headline inflation inched down from 1.41% in March to 1.34%, which undershot market expectations of 1.40%. Meanwhile, the core inflation index, which excludes volatile categories such as fresh food and energy, decreased 0.72% over the previous month. Nevertheless, annual core inflation remained virtually unchanged at 0.99%, from 1.0% in March, and annual average headline inflation was steady at 1.0% for the fifth consecutive month. The government expects inflation to average 2.0% in 2011.


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