Figures on Monday showed that consumer inflation ticked up in August to the fastest pace in six months, but the rise was due more to higher food costs from weather disruptions than a recovery in domestic demand. The 0.6% annual rate was still lower than forecasts.
More worrying, producer price deflation intensified. The producer price index in August slid 1.8% from a year earlier, the largest fall in four months, worse than July’s 0.8% decline and below economists’ consensus forecast of a 1.4% fall.
Factory gate prices have been in outright deflation for two years, a key reason why consumer price inflation is unlikely to accelerate much any time soon.
Meanwhile, Taiwan’s TSMC, the world’s largest contract chipmaker, will announce its monthly sales figures for August. Sales in June totaled T$207.87 billion, and rose to T$256.95 billion in July.
Taiwan firms like TSMC are major supplier to Apple <AAPL.O>, Nvidia <NVDA.O> and other tech giants. Their growth helped drive Taiwan’s August exports to an all-time monthly high of nearly $44 billion, as growing demand for chips to supply the AI industry offset anemic demand from China.