Taiwan: Decline in inflation continues in December
January 6, 2014
In December, consumer prices fell 0.10% over the previous month, which followed the 0.72% decrease tallied in November. According to the Directorate General of Budget, Accounting and Statistics (DGBAS), the monthly fall in consumer prices reflected that a drop in prices of vegetables and garments more than offset a rise in prices for food as well as for lubricants.
Inflation declined from 0.7% in November to 0.3% in December, falling short of the 0.8% rate the market had expected. Annual average inflation inched down from 0.9% in November to 0.8% in December and now sits at the lowest level since October 2010.
The core inflation index - which excludes volatile categories such as fresh food and energy - registered a nearly-flat reading, decreasing 0.01% over the previous month (November: -0.11% month-on-month). Annual core inflation stabilized at November's 0.2% in December.
FocusEconomics Consensus Forecast panelists expect inflation to average 1.5% in 2014, which is down 0.2 percentage points from last month's forecast. For 2015, the panel sees inflation increasing to 1.8%.