The consumer price index (CPI) last month grew 2.9 percent from a year earlier, with bad weather driving up food costs, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
Although the latest headline CPI data remained above the central bank’s 2 percent alert level, it moderated from 3.05 percent a month earlier and is expected to ease further as the chances of more tropical storms or typhoons in the next few months are low, DGBAS official Tsao Chih-hung (曹志弘) said.
The inflationary gauge after seasonal adjustments shed 0.07 percent, while core CPI — which excludes volatile items — slowed to 2.38 percent from 2.49 percent, both indicating that inflationary pressures are tapering off, Tsao said.
Photo: CNA
The central bank is to review its monetary policy next week after leaving interest rates unchanged in June and September to uphold a sluggish economy.
However, almost all board directors voiced discomfort over lingering inflation and said that monetary tightening should restart if necessary.
The central bank usually takes cues from the US Federal Reserve’s monetary policy decisions, with the Fed possibly making changes at its meeting next week.
Food costs, the largest chunk of the CPI weighting, spiked 5.63 percent, with typhoons in September and October affecting fruit and vegetable supplies, pushing prices up 18.3 and 10.67 percent respectively, the DGBAS said.
Meat prices increased 6.15 percent on the back of higher feed costs, it said, adding that processed food and dining out rose 4.75 and 4.21 percent respectively.
Medical and healthcare costs rose 3.05 percent, with drug and health product vendors hiking prices by 3.93 percent and hospital facilities increasing charges in line with National Health Insurance adjustments for outpatient treatment and copayment rates, it said.
Education and entertainment costs rose 2.39 percent, with post-COVID-19 pandemic consumption remaining strong, boosting business at entertainment, recreational and hospitality service providers, it said.
Prices for miscellaneous items advanced 2.33 percent due to more expensive gold and jewelry accessories, as well as a hike in prices for domestic services, it said.
Accommodation prices climbed 1.85 percent, while transportation and communications costs rose 1.18 percent, and home repair, rent, electricity and oil prices all increased, the DGBAS said.
The producer price index (PPI), which measures price changes from a seller’s viewpoint, declined 0.7 percent year-on-year, steeper than a 0.38 percent fall in October, dragged by lackluster demand for petrochemicals and raw materials, it said.
In the first 11 months of this year, CPI increased 2.48 percent from a year earlier, while PPI retreated 0.56 percent, it said.
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