Taiwan inflation hits new high in July

Headline inflation jumped to 2.5% y/y from 1.8% in June.

This was the the highest year-on-year increase since September 2008, according to BBVA, mainly driven by recent hikes in food and oil prices under extreme weather conditions, particularly heavy rains and typhoons.

"Looking ahead, modest inflationary pressure in Taiwan is likely to continue agricultural disruptions from the recent typhoon. Rising inflation will make it less likely for the central bank to cut interest rates (though this had been an increasing possibility after the central bank recently lowered interbank loan rates in order to boost financial market liquidity) in its quarterly meeting held at the end of September," said BBVA.