Taiwan's consumer price inflation accelerated unexpectedly to a 6-month high at the start of the year, driven by increases in vegetable prices and the impact of the Lunar New Year's holidays, according to data released by the Directorate General of Budget, Accounting, and Statistics on Thursday.
Consumer prices rose 3.04 percent year-on-year in January, faster than the 2.71 percent increase in December. Economists had forecast inflation to slow to 2.69 percent.
Further, this was the weakest inflation rate since July 2022, when prices had risen 3.35 percent.
The price index for vegetables grew 28.25 percent annually in January, and that for eggs rose 15.74 percent.
On a monthly basis, consumer prices moved up 0.89 percent in January, mainly because the index for services for nursery and nursing care rose 25.42 percent due to the custom of extra pay before the Lunar New Year holidays.
High holiday demand increased the entertainment expense index by 4.26 percent and the transportation fee index by 1.88 percent, the agency said.
Producer price inflation also eased to 5.61 percent in January from 6.32 percent in the prior month. The overall inflation was largely driven by higher prices for water, electricity and gas supply as well as petroleum and coal products.
