Taiwan: Inflation moderates in May
June 5, 2014
In May, consumer prices added 0.14% over the previous month. The print came in below the 0.66% increase registered in April and mainly reflected that lower prices for clothing, cosmetic items and services for personal care offset higher fresh food prices.
As a result of the subdued monthly increase, annual headline inflation inched down from 1.7% in April—a 14-month high—to 1.6% in May, which undershot the 1.7% rate the market had expected. Annual average inflation inched up from 0.6% in April to 0.7% in May.
Core consumer prices, in which prices for fresh food and energy are not considered, were virtually unchanged in May (April: +0.82% month-on-month) and drove annual core inflation to 1.5% (April: 1.2% year-on-year).
Author: Ricardo Aceves, Senior Economist