Taiwan: Inflation rises to highest level in nearly a year in January
February 8, 2017
In January, consumer prices fell 0.02% over the previous month, which followed the 1.00% drop recorded in December. The price fall continued to be driven by the harvest of quick-maturing vegetable crops, causing the price of vegetables to plunge 27.3%. A drop in prices for clothing also contributed to the monthly decline.
Inflation rose from 1.7% in December to 2.2% in January, marking the highest reading since February 2016. Moreover, annual average inflation inched up from 1.4% in December to 1.5% in January.
Core consumer prices, which exclude prices for electricity and fresh food, jumped 0.67% from the previous month in January, contrasting the 0.15% decrease in December. The monthly jump in core prices stemmed mainly from a spike in prices for nursery and nursing care. Core inflation climbed to 1.7% in January from December’s 0.8%.
Author: Ricardo Aceves, Senior Economist