Taiwan: Inflation rises to 17-month high in July
August 5, 2014
In July, consumer prices remained virtually unchanged, falling 0.04% over the previous month. The reading contrasted the 0.51% increase registered in June. The subdued reading reflected that lower prices for clothing and footwear as well as fresh food compensated for higher prices in recreation, due to the summer season.
Annual headline inflation rose from 1.6% in June to 1.8% in July, which marked the highest level since February 2013. The reading was on par with market expectations. Annual average inflation inched up from 0.8% in June to 0.9% in July.
Core consumer prices, which strip out prices for electricity and fresh food, in July added 0.08% over the previous month (June: +0.13% month-on-month). Annual core inflation stabilized at June’s 1.5% in July.
Author: Ricardo Aceves, Senior Economist