TAIPEI (Taiwan News) — Experts predict inflation will fall below 1% next year, as Taiwan’s economy is likely to have flashed red in October for the ninth month running, National Development Council (NDC) Minister Kung Ming-hsin (龔明鑫) said Wednesday (Nov. 24).
In the NDC’s five-color system reflecting the country’s performance, red signifies an overheating or booming economy. The results for the month of October will be announced Friday (Nov. 26), but Kung expressed optimism, CNA reported.
As oil prices begin to fall and the disruption of supply lines comes to an end, inflationary pressures will diminish, leading the increase in the Consumer Price Index (CPI) to decrease from an estimated 2% for 2021 to less than 1% next year, according to the minister.
Current economic problems and inflationary pressures should decline as time progresses, seeing a return to normal during 2022, Kung said. While export growth is softening, the NDC sees strengthening domestic consumption as helping Taiwan’s economy move in the right direction.