Taiwan Inflation


Taiwan: Inflation plunges in February

March 5, 2012

In February, consumer prices declined 1.33% over the previous month, which contrasted the 0.33% rise recorded in January. The monthly price fall was broad-based, as most categories recorded lower prices than in the previous month. Annual headline inflation plummeted from 2.4% in January to 0.3% in February, undershooting market expectations of 1.4% rate. The figure marks, in fact, the lowest level since October 2010 and comes after inflation had shot up to a three-year high in January. The core inflation index, which excludes volatile categories such as fresh food and energy, declined 0.87% over the previous month, prompting annual core inflation to plunge from 1.9% in January to minus 0.1%. Finally, annual average headline inflation inched down from 1.5% in January to 1.4% in February. The government expects inflation to average 1.3% this year.


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