The consumer price index (CPI) last month made a noticeable advance of 2.93 percent from a year earlier, driven by spikes in food costs as bad weather hurt fruit and vegetable supply, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
It was the second straight month the inflationary gauge accelerated faster than the central bank’s 2 percent target to a new eight-month high and might rise above the 3 percent mark if the agricultural damage turns out worse than expected, the statistics agency said.
“However, there is no need to worry about the second wave of inflation given that domestic product prices have declined for two consecutive quarters, indicating inflationary pressure has mitigated,” DGBAS official Tsao Chih-hung (曹志弘) said.
Photo: CNA
The CPI reading after seasonal adjustments rose a mild 0.34 percentage points month-on-month, and is likely to hover at similar levels this month if vegetable and fruit prices hold steady year-on-year, Tsao said.
Core CPI, a more reliable long-term price tracker, as it excludes volatile items, grew 2.48 percent, moderating from a 2.57 percent increase one month earlier and is consistent with the trend of higher entertainment and dining out charges, he said.
Still, people might feel the pinch more sharply due to vegetable and fruit price hikes, Tsao said.
Food costs, the largest chunk of the CPI weighting, elevated 4.78 percent year-on-year after heavy rains disrupted vegetable and fruit supply, and raised their prices by 9 percent and 8.46 percent respectively, the monthly report by the DGBAS showed.
Meat costs rose 6.29 percent while egg, fishery and grain products climbed at similar paces, it said.
Education and entertainment prices increased 2.83 percent on the back of solid demand for leisure and recreation services in the post-COVID-19-pandemic era, it said.
Prices of miscellaneous items picked up 2.73 percent and medicine and healthcare gained 2.67 percent, it said.
Transportation costs rose 2.32 percent, as international oil prices spiked 7.64 percent, although cheaper metro and air fares offset partial increases, it said.
Shelter costs registered a 1.81 percent increase, as house repair prices, rents and electricity charges became more expensive due to upward rate adjustments, it said.
The producer price index (PPI), which measures price changes from a seller’s perspective, declined 0.01 percentage points mainly because CPC Corp, Taiwan (CPC, 台灣中油) lowered gas prices to industrial customers, DGBAS said, adding that selling prices for metal and chemical products remained soft.
In the first nine months of this year, the CPI expanded 2.36 percent, while the PPI shrank 0.59 percent, the DGBAS said.
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