Consumer prices in March rose for the third consecutive month after being in a deflationary trend for half a year, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported yesterday.
The March inflation rate rose 0.90 percent year-on-year as a result of rising food and clothing prices, the DGBAS said. But the figure was down 0.06 percent month-on-month mainly due to reductions in the cost of vegetables, clothes and tour groups compared with the previous month.
The consumer price index (CPI) in February increased 0.65 percent year-on-year but was down 0.27 percent month-on-month.
There was some room for a modest hike in the government CPI growth forecast of 0.48 percent made in February, said Liu Beei-chern (劉北辰), a deputy director at the statistics agency.
"We will make such an adjustment, if any, when reporting economic data for the first quarter next month."
The CPI in the first quarter rose 0.51 percent, much higher than the 0.13 percent previously forecast, mainly on an unexpected firming of vegetable and fruit prices, as well as smaller falls in housing rent during the period, he said.
On the other hand, Liu said there was little reason at the moment to worry about inflationary pressure resurfacing.
"CPI growth of up to 3.0 percent should be tolerable. Furthermore, the core price index rose a much milder 0.12 percent during the three-month period," he said.
The New Taiwan dollar's recent return to strength against the US dollar was unlikely to be reflected in consumer prices any time soon.
"All else being equal, a stronger New Taiwan dollar will certainly help ease inflation in putting the brakes on price hikes for imports, but that is a topic for the longer term," Liu said.
March wholesale prices rose 2.5 percent from a year earlier and were up a seasonally-adjusted 0.62 percent month-on-month, the DGBAS said.
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