Annual inflation rate in Taiwan dropped to 1.17 percent in October 2018 from 1.72 percent in the previous month and below market expectations of 1.53 percent. It was the lowest inflation since January, as prices rose at a softer pace for food (1.5 percent from 2.5 percent in September), namely meat (0.34 percent); transportation & communication (2.5 percent from 2.9 percent); education & entertainment (0.1 percent from 0.3 percent) and miscellaneous goods & services (2.9 percent from 5.1 percent); and fell 1.7 percent for clothing (compared to a 1.9 percent gain in September). Contrarily, cost picked up for both housing (0.9 percent from 0.8 percent) and health (0.9 percent from 0.8 percent). Annual core inflation, which excludes fruits, vegetables and energy eased to 0.7 percent from 1.2 percent in the prior month. On a monthly basis, consumer prices edged up 0.08 percent, after a 0.14 percent gain in September. Inflation Rate in Taiwan averaged 4.08 percent from 1960 until 2018, reaching an all time high of 61.47 percent in March of 1974 and a record low of -3.09 percent in October of 1970.
Inflation Rate in Taiwan is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Taiwan to stand at 1.80 in 12 months time. In the long-term, the Taiwan Inflation Rate is projected to trend around 1.80 percent in 2020, according to our econometric models.