Taiwan: Inflation falls in March
April 8, 2013
In March, consumer prices dropped 1.41% over the previous month, which contrasted the 0.48% price increase recorded in February. According to the Directorate General of Budget, Accounting & Statistics (DGBAS) the monthly drop was mostly the result of lower prices for nursery and nursery care as well as for entertainment expenses after the Lunar New Year holiday.
Annual headline inflation slowed down from 3.0% in February to 1.4% in March, below market expectations, which had inflation reaching 1.8%. Meanwhile, the core inflation index - which excludes volatile categories such as fresh food and energy - fell 1.1% in March, prompting annual core inflation to decrease from 2.2% in February to 1.2%.
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%.