Taiwan Inflation Climbs to 4-Month High

The annual inflation rate in Taiwan rose slightly to 1.60% in August from 1.54% in July, the highest reading in four months, yet still below the central bank’s 2% target. The uptick was driven primarily by higher food prices (3.18% vs 2.91% in July), as recent typhoons and heavy rainfall caused agricultural losses, pushing vegetable, meat, and food-away-from-home prices higher. Prices also rose further in housing (1.8% vs 1.75%), miscellaneous goods and services (2.59% vs 2.06%), and health (1.75% vs 1.66%). In contrast, the overall increase was partially offset by moderated price growth in education and entertainment (1.26% vs 1.45%) and a further decline in transportation and communication prices (-1.34% vs -0.89%). On a seasonally adjusted monthly basis, consumer prices rose 0.12% in August, easing from a 0.24% increase in July.