Taiwan: Inflation rises in November
December 6, 2010
In November, consumer prices added 0.21% over the previous month, which was below the 0.66% price rise recorded in October. The higher reading reflected rising prices for clothes, due to new garments being available in the market. Meanwhile, food prices remained stable in November following a price spike experienced during the previous month due to the typhoon that struck the country in October. Despite the modest monthly reading, annual headline inflation jumped to 1.5% in November from 0.6% in October, mainly due to a low base effect. The rise overshot market expectations of a 1.0% inflation. Meanwhile, the core inflation index, which excludes volatile categories such as fresh food and energy, rose 0.21% over the previous month. As a result, annual core inflation increased from 0.6% in October to 0.9%, while annual average inflation increased from 0.6% in October to 0.8%. The government expects inflation to average 0.98% this year before rising to 1.85% in 2011.