Taiwan Inflation


Taiwan: Inflation eases more than expected

November 5, 2011

In October, consumer prices rose 0.50% over the previous month, following the 0.11% increase in September. The monthly rise reflected a surge in prices for clothing due to the arrival of the new autumn/winter collections, as well as higher food prices. In spite of the monthly increase, annual headline inflation dropped from 1.4% in September to 1.2% in October, below market expectations of a 1.3% rate. The core inflation index, which excludes volatile categories such as fresh food and energy, increased 0.78% over the previous month. As a result, annual core inflation rose from 1.2% in September to 1.5% in October. In addition, annual average headline inflation inched up to 1.4% in October. The government expects full-year inflation at 1.5% this year and 1.1% in 2012.


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