While the electricity price hikes will add to inflation, other factors will likely mitigate that, said Shivaan Tandon, emerging Asia economist at the research firm. The jobs market has cooled even as growth has accelerated, and spillovers from strong external demand to domestic inflation have been limited.
“While economic growth in Taiwan has been very strong over the past three quarters, the booming economy has not led to a sharp rise in inflation,” he said. “We expect this to be a case of one and done.”