Taiwan: Inflation inches up but remains feeble in January

Consumer prices fell 0.09% in January from the previous month, which was less severe than the 0.50% decline registered in December. The fall was largely due to lower prices for garments—owing to winter sale promotions—as well as fuel and lubricants. It was however partly offset by higher prices for eggs, fish and seafood.

Inflation inched up from the flat reading logged in December to 0.2% in January, while annual average inflation ticked down to 1.3%, from 1.4% in December.

Core consumer prices, which exclude prices for energy, fruits and vegetables, fell 0.06% month-on-month in January, following December’s flat reading. Lastly, core inflation was stable at December’s 0.5%.

Taiwan Inflation Forecast

The Central Bank expects inflation to average 1.1% in 2019. FocusEconomics panelists expect inflation to average 1.2% in 2019, which is down 0.2 percentage points from last month’s forecast, and 1.2% again in 2020.