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Taiwan Inflation February 2021

Taiwan: Inflation returns in February

Consumer prices rose 0.46% in February over the previous month, accelerating from January’s 0.37% increase and supported by Lunar New Year-driven holiday effects. February’s figure was the sharpest increase in prices since June 2020. Looking at the details of the release, prices for food fell in February. Meanwhile, transportation prices increased at a weaker pace. However, prices for education and entertainment gained significant steam.

Inflation came in at 1.4% in February, contrasting January’s 0.2% drop in consumer prices. However, this rise in price pressures was largely due to the Lunar New Year distorting the reading. The annual average variation of consumer prices ticked up to minus 0.3% in February (January: -0.4%).

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