Taiwan: Inflation falls to lowest level in almost three years
August 5, 2013
Consumer prices dropped 0.14% over the previous month in July, which contrasted the 0.50% rise recorded in June. The monthly decrease was mostly the result of lower prices for clothing and communication, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).
Annual headline inflation slowed to 0.1% in July (June: 0.6%). The print was well below market expectations which saw inflation remaining at 0.6% and marks the lowest level seen since August 2010. Meanwhile, the core inflation index - which excludes volatile categories such as fresh food and energy - remained flat in July (June: +0.13% month-on-month). Annual core inflation decreased from 0.6% in June to 0.5% in July.
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%.