Key insights
- Taiwan's April inflation rose to 1.74%, driven by energy costs. BofA anticipates further price pressures, projecting inflation near 2% in May due to elevated global oil prices. Rising import prices also contribute to inflationary pressures. This could indirectly influence US equities as higher global inflation may lead to tighter monetary policies worldwide.
Investing.com -- Taiwan's consumer price inflation increased to 1.74% year-over-year in April, up from 1.2% in March, according to Bank of America.
The rise was driven primarily by energy prices, which climbed around 10.8% year-over-year, though the government's fuel price smoothing mechanism moderated the pass-through effect. Goods inflation rose to 1.1% from 0.2% in March, while services inflation increased to 2.3% from 2.2%.
Core CPI inflation, which excludes vegetables, fruits and energy, edged down slightly to 1.91% year-over-year from 2.0% in March. On a monthly basis, CPI rose 0.47% in April on a seasonally adjusted basis.
Food prices rose only 0.6% year-over-year, as fruit prices fell 18.2% year-over-year, offsetting increases in meat prices at 3.07% and dining-out prices at 2.88%.
Services inflation remained firm, with housing costs rising around 2.1% year-over-year and rents up 1.9%. Education, recreation and medical care also recorded steady increases. Dining-out inflation stood at 2.9% year-over-year.
Bank of America expects inflation to rise toward around 2% in May, assuming elevated global oil prices and relatively stable domestic fuel pricing. Import prices in Taiwan dollar terms were up 9.2% year-over-year in April.