Taiwan: Inflation falls in October
November 6, 2018
Consumer prices rose 0.08% in October from the previous month, down from a 0.17% uptick in September. The increase was mainly driven by a sharp upswing in the prices of garments, while the price of fruits and fuel and lubricants were also higher. Conversely, prices for water, electricity and gas fell, as did prices for vegetables, partly offsetting the price increases.
Inflation fell sharply to 1.2% in October, down from 1.7% in September. Meanwhile, annual average inflation increased to 1.5%, from 1.3% in September.
Core consumer prices, which exclude prices for energy, fruits and vegetables, increased 0.34% over the previous month in October, contrasting a 0.23% contraction recorded in September. Core inflation tumbled to 0.7% in October, from 1.2% in September.
Taiwan Inflation Forecast
The government expects inflation to average 1.1% in 2019. FocusEconomics Consensus Forecast panelists expect inflation to average 1.4% in 2019, which is unchanged from last month’s forecast. For 2020, the panel also sees inflation averaging 1.4%.
Author: Joffrey Simonet, Economist