FX.co ★ Taiwan Inflation Hits Lowest Since March 2021

The annual inflation rate in Taiwan decreased to 1.23% in November, reaching its lowest point since March 2021. This marks a decline from the revised figure of 1.47% recorded in October. Notably, this is the seventh consecutive month where inflation has remained under the central bank’s 2% target. The decline in inflation was primarily influenced by reduced price increases across various sectors: food costs fell to 1.48% from 2.00% in October, housing dipped to 1.86% from 2.00%, education and entertainment decreased to 1.25% from 1.44%, and miscellaneous goods and services reduced to 2.84% from 3.16%. Meanwhile, clothing prices experienced a decrease, moving into negative territory at -0.13%, down from 0.42%. Conversely, there was a rise in health care costs to 1.87% from 1.75%, and a slight easing in the declines for transportation and communication, improving to -1.15% from -1.40%. When adjusted for seasonal variations, consumer prices increased by 0.09% from October, following a 0.25% rise the previous month.