Consumer price index in fastest rise in five months

The consumer price index last month was up 0.70 percent year-on-year on increases in fishery products, fuel, electricity and tobacco prices, the Directorate General of Budget, Accounting and Statistics (DGBAS) said yesterday.

The rise, its fastest pace in five months, compared with an increase of 0.21 percent in November, the DGBAS said.

Last month's figure was up a seasonally adjusted 0.43 percent month-on-month, the DGBAS added.

The December core price index, which excludes prices of fresh vegetables and fruits, fishery products and energy, was up 0.68 percent from a year earlier, but down 0.05 percent from November.

Last year, the CPI was up 0.60 percent and the core index was up 0.54 percent.

The latest CPI report may add pressure to the nation's central bank to continue to raise interest rates.

The central bank has increased borrowing costs each of the past 10 quarters to a five-year high of 2.75 percent.

Central bank Governor Perng Fai-nan (彭淮南) last week said inflation was "low and stable" and that he would adjust rates to an "appropriate level."

The central bank is forecasting inflation of 1.75 percent this year, compared with an estimated 0.7 percent for last year projected by the DGBAS.

The wholesale price index, meanwhile, rose 6.46 percent year-on-year last month and was up a seasonally adjusted 0.57 percent month-on-month, the DGBAS said.

For all of last year, the WPI was up 5.64 percent from a year earlier.