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Foundation calls for price probes

"We know prices rise and fall in response to global trends ... but the government should make sure price gouging is not the main reason behind the increase."

Cheng Jen-hung, Consumers' Foundation chairman

The Consumers' Foundation (消基會) yesterday urged the government to step up probes into price gouging to avoid inflation after finding that prices of some major household goods had soared above acceptable prices.

The foundation said that prices of household products such as cooking oil and rice had climbed as much as 51 percent since the beginning of the year, based on its own price checks at major retailers.

"The government's statistics do not reflect the true spike in prices. But consumers are already reeling from the rise in household expenses," foundation chairman Cheng Jen-hung (程仁宏) said.

The consumer price index climbed 5.34 percent year-on-year last month, marking the biggest jump in 13 years, mostly because of the rise in prices for fruits and vegetables in the wake of the summer's typhoons, the Directorate-General of Budget, Accounting and Statistics said on Monday.

The price of fresh milk rose around 13 percent year-on-year based on the government's statistics, but the foundation said the price of powdered milk had surged more than 50 percent this year, making it the biggest hike among the 18 items the group checked.

The foundation's latest check found that prices of major household commodities had risen between 2 percent and 51 percent this year as of early this month.

"We know prices rise and fall in response to global trends ... but the government should make sure price gouging is not the main reason behind the increase," Cheng said.

To avoid unjustified price hikes and reflect global prices, the government should increase regular price checks instead of forming a task force dealing with short-term problems, Cheng said.

Late last month, the Cabinet formed a special task force to rein in the surging prices of oil and gas.

The consumer organization does regular price checks targeting major brands at hypermarkets such as Carrefour Corp Taiwan (家樂福).

The group said the prices of eggs, toilet paper and shampoo were also on the rise, in addition to surging vegetable prices.

"And the list goes on," the foundation said.
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