Taipei - Taiwan's inflation rate dropped to 4.78 per cent in August thanks to a drop in fuel prices, the government's statistics agency said Friday.

"The rate in August eased to 4.78 per cent, compared with July's 5.91 per cent and June's 4.97 per cent," the Directorate General of Budget, Accounting and Statistics said in a statement.

The agency said the decline was due to cuts in local fuel prices by the state-owned oil refiner for three consecutive weeks in August. (dpa)