Taiwan Inflation


Taiwan: Inflation remains steady in August

September 5, 2011

In August, consumer prices remained virtually unchanged (+0.03% month-on-month), following the 0.29% drop recorded in July. The monthly reading reflected higher prices for food during the Chinese Ghost Festival, which offset lower prices for transportation. Annual headline inflation remained steady at July's 1.3%, below market expectations, which saw inflation accelerating to 1.6%. The core inflation index, which excludes volatile categories such as fresh food and energy, decreased 0.22% over the previous month. In spite of the monthly drop, annual core inflation rose from 1.1% in July to 1.3% in August. In addition, annual average headline inflation inched up from 1.1% in July to 1.2% in August. The government expects inflation to average 1.9% in 2011.


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