Inflation rising to 2.46% takes Taiwan by surprise

Blame it on the nasty weather condition resulting to higher food prices.

According to OCBC, Taiwan’s July CPI unexpectedly rose to 2.46% yoy up from 1.77% yoy in June. The higher-than-expected CPI was mainly due to higher food prices affected by bad weather. As such, the impact could be temporary.

Nevertheless, the upbeat inflation figure is still expected to hold Taiwanese central bank back from possible interest rate cut in spite of the lower growth prospect. "We expect the interest rate to remain intact for the second half," OCBC said.

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