The consumer price index (CPI) last month picked up 2.35 percent, easing from a revised 2.74 percent gain in October, as food and entertainment became more expensive and a weak New Taiwan dollar sharpened imported inflation, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
The latest inflationary reading represented the lowest in nine months, but might rise slightly this month as a favorable base effect linked to tariff cuts would fade, DGBAS official Tsao Chih-hung (曹志弘) told a news conference in Taipei.
“Overall inflationary pressure was subdued, in line with declines in international raw material prices, but imported inflation remained acute because of a weak NT dollar,” Tsao said.
Photo: CNA
The local currency last month depreciated 11.57 percent year-on-year versus the US dollar, contributing to a 12.62 percent spike in imported prices, the agency’s monthly report showed.
The currency trend might sustain for a while, as global funds take shelter in the greenback to take advantage of further monetary tightening by the US Federal Reserve.
Still, food costs, the largest chunk of CPI weighting, underpinned the upward trend in prices, gaining 4.12 percent, it said.
In particular, egg prices swelled nearly 25 percent and meat prices increased 5.79 percent, it said, adding that fishery product prices grew 6.23 percent and dining out costs expanded 5.81 percent.
That meant the average person felt the price pinch more, despite the slowdown in CPI value, as eggs are widely used in sandwiches, pancakes, hamburgers, rice rolls and other meal options, Tsao said.
Core CPI, a more reliable long-term price tracker because it strips out volatile items, climbed 2.86 percent, outpacing the central bank’s 2 percent target.
The monetary policymaker is due to review interest rates on Thursday next week, after three rate hikes thus far this year.
Cost of living — including family items and house rent — increased 2.35 percent, as landlords passed on higher mortgage burdens to tenants, it said.
Some central bank board members in September suggested stricter measures to curb property price hikes, but others voiced concern that such a move would only lead to higher rent.
Education and entertainment became more expensive as loosened COVID-19 restrictions boosted demand for gatherings and overseas travel, driving up recreational charges by 5.12 percent, the DGBAS said.
The wholesale price index (WPI), which reflects commercial production costs, rose 9.07 percent, narrowing to a single digit, as the global economy grew increasingly feeble, the agency said.
In the first 11 months of this year, the CPI advanced 2.97 percent, while the WPI expanded 12.92 percent, the agency said.
Taiwan’s technology protection rules prohibits Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) from producing 2-nanometer chips abroad, so the company must keep its most cutting-edge technology at home, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the remarks in response to concerns that TSMC might be forced to produce advanced 2-nanometer chips at its fabs in Arizona ahead of schedule after former US president Donald Trump was re-elected as the next US president on Tuesday. “Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently,” Kuo said at a meeting of the legislature’s
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
RSS