Taiwan: Inflation jumps in December
January 5, 2018
Consumer prices decreased 0.15% from the previous month in December, contrasting the 0.24% increase recorded in November. December’s decline resulted from a fall in the prices of vegetables, eggs and garments, which more than offset the rise registered in the prices of tobacco and betel nuts.
Meanwhile, inflation jumped to 1.2%, a sharp increase from November’s 0.3% reading. The acceleration reflected a stabilization of food prices, which increased marginally in the month. Higher prices for fuels and lubricants also contributed to the acceleration, despite moderating from November. Annual average inflation inched down to 0.6% from 0.7% a month earlier.
Core consumer prices, which exclude prices for energy and fresh food, increased 0.14% in December on a month-on-month basis, contrasting the 0.09% decline recorded in the previous month. Meanwhile, core inflation rose to 1.6% from 1.3% in November.
Taiwan Inflation Forecast
The government expects inflation to average 0.9% in 2018. FocusEconomics Consensus Forecast panelists expect inflation to average 1.2% in 2018, which is unchanged from last month’s forecast. For 2019, the panel also sees inflation averaging 1.2%.
Author: Joffrey Simonet, Economist