Taiwan Inflation


Taiwan: Inflation rises to highest level in over three years

February 8, 2012

In January, consumer prices increased 0.33% over the previous month, which was above the the 0.23% rise recorded in December. The monthly price increase mainly reflected how a large rise in housing prices more than offset lower prices for food as well as for clothing. Annual headline inflation jumped from 2.0% in December to 2.4% in January. The figure marks the highest level since October 2008 and overshot market expectations, which saw inflation inching up to 2.1%. The core inflation index, which excludes volatile categories such as fresh food and energy, added 0.55% over the previous month, and annual core inflation jumped from 1.2% in December to 1.9%. Finally, annual average headline inflation inched up to 1.5% in January, up from 1.4% in December. The government expects inflation to average1.3% this year.


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