Taiwan: Consumer prices rebound in September
October 7, 2013
In September, consumer prices jumped 1.3% over the previous month, following the 0.1% increase tallied in August. This marked the highest increase since August 2009, although it was due to exceptional factors. According to the Directorate General of Budget, Accounting and Statistics (DGBAS), the increase in prices was mainly due to "the invasion of consecutive typhoons" and the increase in demand during the Moon Festival, which pushed prices of vegetables and fruit up by 39.2% and 8.3% respectively.
Consumer prices increased 0.8% in September over the same month last year, which contrasted the 0.8% drop observed in August; the increase was larger than the 0.1% rise the market had expected. Annual average inflation declined from 1.3% in August to 1.1% in September.
The core inflation index - which excludes volatile categories such as fresh food and energy - increased 0.1% over the previous month (August: -0.2% month-on-month), which caused annual core inflation to inch up to 0.6% in September (August: +0.5% ).
FocusEconomics Consensus Forecast panelists expect inflation to average 1.2% in 2013, which is down 0.1 percentage points from last month's forecast. Next year, the panel sees inflation increasing to 1.7%, which is unchanged from last month's estimate.