Taiwan: Inflation falls in October
November 5, 2013
In October, consumer prices fell 0.27% over the previous month, contrasting the exceptional 1.30% increase tallied in September and marking the sharpest decline since March. According to the Directorate General of Budget, Accounting and Statistics (DGBAS), the monthly fall in consumer prices mainly reflected a stabilization in the vegetable supply following the sharp increase during September's Moon Festival.
Inflation declined from 0.8% in September to 0.6% in October, falling short of the 1.1% rate the market had expected. Annual average inflation inched down from 1.1% in September to 1.0% in October, and now sits at the lowest level since April 2011.
The core inflation index - which excludes volatile categories such as fresh food and energy - increased 0.38% over the previous month (September: +0.05% month-on-month). Annual core inflation eased to 0.2% in October (September: 0.6%).
FocusEconomics Consensus Forecast panelists expect inflation to average 1.2% in 2013, which is unchanged from last month's forecast. Next year, the panel sees inflation increasing to 1.7%, which is also unchanged from last month's estimate.