Taiwan's CPI inflation to stabilize

Taiwan's CPI inflation data for July is due on 5th August. After slight rebounds in May and June, Taiwan's headline CPI inflation is likely to take a break from its uphill battle in July. Societe Generale expects to see softer food and transportation CPI, as suggested by declines in fresh food and energy prices throughout July. 

However, a positive base effect and an increase in outbound tourism fees may offset the weakness. 

"At the same time, core CPI inflation will likely remain unchanged at 0.6% yoy. That said, we expect both measures to continue to bottom out in the coming months. The headline figure is likely to turn positive in Q4", states SocGen.