Taiwan's inflation rate likely to increase in 2016

Taiwan's CPI inflation remained soft in August, but is poised to bottom out in coming months. The headline CPI is expected to shake off the negative impact of the oil price collapse and turn positive in Q4. Core inflation is likely to strengthen, thanks to the weaker currency.

Both headline and core measures of Taiwan are expected to increase further in 2016 but to remain at benign levels (<1.5%) which will not be a concern for the central bank, said Societe Generale in a reserach note.