Consumer prices rose 0.47 percent last month from the previous month, driven by rising costs in apparel and fruit, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported yesterday.
The consumer-price index (CPI), a closely-watched gauge for inflation, climbed by 0.47 percent to 102.42 points last month from March. The figure is 1.61 percent higher than it was in the same period last year due to increasing costs of food, oil and gas.
After seasonal adjustment, the CPI last month was 0.15 percent higher from March, according to the statistics bureau's statement released yesterday.
Overall, the CPI for the first quarter of the year rose 1.58 percent from a year ago, the statement said.
"The rise is gentle and will not cause inflation as many were worried," said Chen Miao (陳淼), a researcher at the Taiwan Institute of Economic Research (台經院).
But the CPI will keep advancing in the next few months, pushed mainly by rising transportation costs due to soaring oil prices.
The nation's aviation regulator on Wednesday approved the application by domestic airlines to raise fares on routes by 2.7 percent to 6.9 percent starting next month, while taxi drivers' associations are mulling an increase of NT$10 per fare from July.
The wholesale price index (WPI) also went up by 0.69 percent last month from the previous month due to rising costs in oil and iron, as well as domestic poultry and livestock, the statement said.
Although there is no imminent pressure on inflation, Chen said the central bank is likely to raise the benchmark interest rate by 0.25 percent, from current 1.875 to 2.125 next month.
But Cheng Cheng-mount (鄭貞茂), vice president of Citibank Taiwan, said on Wednesday that he estimated the increase would be within 0.125 of a percentage point.
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