The Taiwanese November inflation and trade data, which is set to release this week, are expected to indicate signs of weakening. According to a DBS Bank, the export growth is likely to have dropped to 0.6 percent year-on-year from 7.3 percent in the prior month. Meanwhile, the headline inflation is likely to have decelerated to 0.9 percent.
Technical and cyclical factors are likely to drag exports in the fourth quarter, before the impact of US-China trade war emerges early next year.
“Meanwhile, the sharp correction in global oil prices and the lowering of domestic fuel prices will likely reduce inflation pressures in both upstream and downstream industries this quarter”, added DBS Bank.
