Taiwan: Inflation plunges to lowest level since February in August
Inflation came in at 2.7% in August, down from July’s 3.4% and notably below market expectations. August’s reading represented the weakest inflation rate since February, and was driven by lower price pressures for food, housing, and transportation. Taiwan’s inflation is far below the rates observed in other developed markets, partly due to mild wage growth.
Annual average inflation edged up to 3.0% in August (July: 2.9%). Finally, consumer prices fell 0.09% over the previous month in August, a sharper drop than the 0.03% fall recorded in July.
The lower-than-expected August figure will reduce pressure for the Central Bank to hike rates aggressively when it convenes on 22 September.