The nation's consumer prices rose 0.41 percent in July from a year earlier due to price hikes for tobacco and alcohol, official data showed yesterday.
The consumer price index (CPI) in July was up 0.1 percent from the previous month, the Directorate General of Budget, Accounting and Statistics said.
Higher vegetable and fruit prices were offset by discounts for ready-to-wear clothing, leading to a slight month-on-month increase in the July CPI, it said.
Faster price growth may not indicate a pick-up in consumer demand. Unemployment held near a record high in June, suggesting that a rebound in exports isn't translating into more jobs because manufacturers are moving factories to China to cut costs. Stable international oil prices are also capping price gains.
"Growth in the price index should stay below 1 percent to 2 percent," said Julia Chen, an economist at Fubon Securities Co (富邦證券).
The cost of food and drinks, which makes up about a quarter of the consumer price index, rose 1.6 percent in July from June, without adjusting for seasonal changes, the report showed.
Housing rentals, which make up about a fifth of the index, fell 0.1 percent from June. Gas, electricity and water costs fell 0.2 percent, and clothing prices fell 6.2 percent.
The July wholesale price index (WPI) fell 1.87 percent from a year earlier, and was down 0.43 percent month-on-month, the statistics agency said.
In June, the WPI fell 1.33 percent from a year earlier and was down a seasonally-adjusted 0.82 percent from the previous month.
In the first seven months, the CPI rose 0.03 percent, the core price index rose 0.61 percent.
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