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Taiwan Registers Surprisingly Weak March CPI Reading

Originally published by Marketwatch on April 5, 2017 Read the original article.

For Q1 in Taiwan, the average inflation rate was 0.78%, significantly below the 1.78% registered in Q4 of 2016.

An April 5 Marketwatch article elaborates:

Taiwan’s consumer prices continued to show surprising weakness in March, rising only fractionally from a year earlier as falls in food prices weighed on the overall index.

The consumer price index rose 0.18% in March compared with a year earlier.

Economists surveyed by The Wall Street Journal had expected inflation of 0.5% in March, with many of them saying that prices would normalize after volatile readings in the first two months of the year.

The CPI jumped 2.24% in January, due to surging food and service prices linked to the Lunar New Year holiday at the end of January. They then stuttered in February, falling 0.07%.

Food prices fell 1.72% in March, with a 38% year-over-year drop in vegetable prices the main element dragging on overall food costs.

Compared with the previous month, the CPI rose 0.30% after seasonal adjustment.

Regarding the nation’s stock market, EWI’s April Asian-Pacific Financial Forecast briefly discussed the Taiwan Index. Take a look at this chart with commentary below:

The Taiwan Index may bounce around resistance near the 10,000 level for a while as it prepares for another wave up … .

If, indeed, Taiwanese stocks do rise, it’s likely that the country’s CPI will too. As EWI has long noted, the economy follows the stock market.

 

 

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