Taiwan: Inflation jumps to 18-month high
September 5, 2014
Consumer prices in August jumped 0.43% over the previous month. The reading contrasted the mild 0.03% drop observed in July and mainly reflected higher prices for food, particularly prices for vegetables and fruits, which jumped disproportionally in August as high temperature and heavy rain damaged crops.
Annual headline inflation climbed from 1.8% in July to 2.1% in August. The reading overshot the 1.8% rate the markets had expected and represented the highest inflation rate since February 2013. Annual average inflation inched up from 0.9% in July to 1.1% in August.
Core consumer prices, which strip out prices for electricity and fresh food, in August fell 0.11% over the previous month (July: +0.09% month-on-month). Annual core inflation inched up from 1.6% in July to 1.7% in August.
Author: Ricardo Aceves, Senior Economist