Taiwan: Inflation rises to 14-month high
May 5, 2014
In April, consumer prices rose 0.66% over the previous month, which came in above the 0.19% increase observed in March. The print reflected higher prices for clothing as well as for leisure and culture.
As a result of the monthly increase, annual inflation rose from 1.6% in March to 1.7% in April, which represented the highest inflation rate since February 2013. The reading was on par with market expectations. Annual average inflation inched up from 0.5% in March to 0.6% April.
Core consumer prices, in which prices for fresh food and energy are not considered, jumped 0.82% in April (March: +0.02% month-on-month), which pushed annual core inflation to 1.2% (March: 1.0% year-on-year).
The government expects inflation to average 1.07% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 1.5% in 2014, which is unchanged from last month's forecast. For 2015, the panel sees inflation increasing to 1.7%.
Author: Ricardo Aceves, Senior Economist