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Taiwan Inflation March 2018

Taiwan: Inflation eases from 13-month high in March as the Lunar New Year effects dissipate

Consumer prices fell 0.98% from the previous month in March, contrasting the 0.94% month-on-month increase recorded in February. Price dynamics in the month reflected a return to normal conditions following the Lunar New Year festivities in February, which notably caused a hike in the prices for nursery and nursing care services, entertainment expenses, as well as fish and seafood. After the spike in demand ended, these categories recorded price declines in March.

Inflation fell to 1.6% in March, down from the 13-month high of 2.2% in February. Annual average inflation, meanwhile, rose to 0.8% from 0.7% a month earlier.

Core consumer prices, which exclude prices for energy, fruit and vegetables, fell 0.89% on a month-on-month basis in March, again contrasting the 1.08% increase in February. Core inflation slowed to 1.5%, down from a nine-year high of 2.4% in February.

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