Inflation in Taiwan forecast to fall after surge in February: Barclays
CNATAIPEI -- Inflation in Taiwan will return to a more “normal track” after spiking in February, according to British bank Barclays PLC.
March 9, 2013, 12:09 am TWN
The consumer price index rose nearly 3 percent year-on-year in February due to a seasonal pick-up in demand over the Lunar New Year holiday and the low baseline set last February, which was not affected by the New Year break, the bank said recently.
In 2012, the holiday was celebrated in January.
Inflation for March will remain at “relatively high levels” and then return to a normal track afterwards, the bank said.
On a quarterly average basis, the bank said it expects inflation to clock 2 percent in the first quarter, before falling below 2 percent in the remaining quarters of the year.
More neutral weather patterns in Asia this year, in contrast to the El Nino conditions experienced early last year, should allow food prices to remain steady and moderate inflation for 2013 as a whole, the bank said.
It predicted consumer prices will rise an average of 1.5 percent this year, down from 1.93 percent in 2012.