Taiwan: Inflation rebounds in February
March 5, 2013
In February, consumer prices rose 0.48% over the previous month, which contrasted the 0.17% price fall recorded in January. According to the Directorate General of Budget, Accounting & Statistics (DGBAS) the monthly increase was mostly the result of higher prices for nursery and nursery care as well as for entertainment expenses during the Lunar New Year holiday.
Annual headline inflation jumped from 1.1% in January to 3.0% in February, exceeding market expectations, which had inflation reaching 2.8%. Meanwhile, the core inflation index, which excludes volatile categories such as fresh food and energy, rose to 0.95% in February, prompting annual core inflation to increase from 0.3% in January to 2.2%. That said, February price figures are distorted due to seasonally factors related to the Lunar New Year.
FocusEconomics Consensus Forecast panellists expect inflation to average 1.7% in 2013, which is unchanged from last month's forecast. Next year, the panel sees inflation inching up to 1.8%.