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.