■ CPI falls again
Taiwan's consumer price index fell 0.06 percent in December compared to the same period last year, its seventh consecutive month of decline, the government said yesterday.
A continuing fall in home rentals as well as declining purchases of personal computers and durable household goods was behind the drop, the Directorate General of Budget, Accounting and Statistics (DGBAS) said.
The index -- a closely watched inflation barometer -- measures changes in retail prices of a constant market basket of goods and services. The cost of food and drink, which accounts for about a quarter of the consumer price index, rose 0.4 percent on an unadjusted basis from the previous month. Clothing prices fell 2.3 percent.
Housing rentals, which make up about a fifth of the index, fell 0.1 percent. Fuel and transport prices were unchanged.
The wholesale price index -- a gauge of production costs -- rose 1.65 percent last month, compared with a revised 1.13 percent rise in November.
Last month's rise was attributed mainly to higher prices for sand and gravel, crude oil and petrochemicals, the DGBAS said.
■ Forex reserves rise
Taiwan's foreign exchange reserves, the third-highest in the world, rose to US$206.63 billion (NT$7 trillion) at the end of December, up US$3.8 billion (NT$128.82 billion) from the previous month, the central bank said yesterday.
Factors that helped boost the reserves included an increase in foreign capital flowing to the nation and the appreciation of the euro and the Japanese yen, the bank said.
The Central Bank of China said Taiwan's foreign reserves, which rank behind those of Japan and China, rose 1.9 percent from US$202.83 billion (NT$6.87 trillion) at the end of November.
■ GE helps with ship repair center
The China Shipbuilding Corp (中船) is planning to set up an Asia-Pacific regional ship repair center in cooperation with the US-based General Electric Company (GE), a spokesman for the state-run company said yesterday.
According to the spokesman, China Shipbuilding and GE agreed upon the planned joint venture after lengthy discussion and the matter is expected to be settled in the near future.
China Shipbuilding hopes to acquire advanced technology from GE and to snatch a larger market share of the global ship maintenance and repair business through the cooperative venture, the China Shipbuilding official said. The projected hub will also help China Shipbuildingsharpen its ability in the field of maintenance and repair of naval vessels, he said.
The state-owned shipbuilder posted a net profit of more than NT$500 million (about US$14.7 million) last year, well above its government-set target of NT$280 million. It has set annual net earnings for this year at NT$350 million.
China Shipbuilding began to post a profit in 2002 after years of losses.
■ NT dollar trades higher
The New Taiwan dollar yesterday traded higher against its US counterpart, rising NT$0.076, or 0.2 percent, to close at NT$33.90 on the Taipei foreign exchange market. Turnover was US$840 million.
The NT dollar had its strongest close and biggest gain since Oct. 15, and the currency is expected to trade between NT$33.20 and NT$34.20 in the first quarter, said Jimmy Koh, head of treasury research at UOB Group.
In a report titled "Quarterly Global Outlook -- Currency Forecast and Interest Rate Trends," Koh said the NT dollar may continue to experience appreciation pressure.
RSS