Taiwan's core CPI to stabilise

Taiwan's daily price data suggested that vegetables, fruits and meat prices all increased over the month. A negative base effect from electricity bills and declines in fuel prices will probably offset part of the strength and drag the headline figure down by around 0.2pp.

"Taiwan's CPI inflation is expected to inch higher to -0.6% yoy in June, due to higher food price inflation", says Societe Generale. 

Hence, food price inflation is expected to have risen further to 1.1% mom in June raising headline inflation by 0.3pp. 

Meanwhile, increases in meat prices and depreciation of the Taiwanese dollar are expected to ease some weakness in the official core CPI inflation. The core CPI inflation is expected to have stopped falling and remain unchanged at 0.6% yoy in June, added Societe Generale.