Taiwan: Inflation slows to 15-month low in May
June 5, 2013
In May, consumer prices rose 0.19% over the previous month, which contrasted the revised 0.61% rise recorded in April. According to the Directorate General of Budget, Accounting & Statistics (DGBAS) the monthly increase was mostly the result of higher prices for fruit and vegetables.
Annual headline inflation slowed down from 1.0% in April to 0.7% in May. The print was below market expectations, which had inflation reaching 0.8%, and marks the lowest level seen since February 2012. Meanwhile, the core inflation index - which excludes volatile categories such as fresh food and energy - dropped 0.22% in April, prompting annual core inflation to decrease from 0.9% in April to 0.6%.
FocusEconomics Consensus Forecast panellists expect inflation to average 1.6% in 2013, which is down 0.1 percentage points from last month's forecast. Next year, the panel sees inflation inching up to 1.8%.