The consumer price index (CPI) last month rose 1.95 percent from a year earlier, outpacing a revised 1.87 percent gain forecast in June, as prices for almost all products except electricity rose, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
Despite the uptrend, the inflationary gauge stayed below 2 percent, the central bank’s red line, as it maintains a loose monetary policy stance to support the economy.
The inflation measure after seasonal adjustments only edged up 0.08 percentage points, the DGBAS said.
Photo: Clare Cheng, Taipei Times
“A significant increase in food prices accounted for the acceleration in consumer prices, and food prices increased because bad weather disrupted vegetable supply,” DGBAS official Tsao Chih-hung (曹志弘) told an online news conference in Taipei.
Tsao said that he stood by his earlier prediction that CPI readings plateaued last quarter and would begin to taper off from this quarter as the low basis of comparison from last year eases.
International fuel and raw material prices would continue to climb, but at a slower pace, Tsao added.
The cost of transportation and communications rose 6.95 percent — the biggest increase last month — driven mainly by a 25.87 percent increase in fuel prices and a 24.88 percent increase in airfare, although telecommunications equipment prices fell 8.59 percent, Tsao said.
Food costs rose 2.45 percent, as vegetable prices increased 19.91 percent, egg prices rose 10.17 percent and meat prices rose 5.11 percent amid unfavorable weather, the DGBAS said.
The core CPI — a more reliable tracker of long-term prices as it excludes items with volatile prices, such as vegetables and oil products — edged up 1.29 percent from last year, the agency said.
Clothing expenses picked up 2.07 percent, while living costs rose 0.69 percent, despite a freeze in summer electricity charges for average households amid a COVID-19 outbreak, it said.
Part of the price hike came from landlords raising rents and the price of materials for decorating and repairing houses rising, it added.
The wholesale price index (WPI), a gauge of commercial production costs, increased 11.77 percent, outpacing a revised 10.91 percent gain forecast in June, as strong demand pushed up prices for raw materials and oil products, it said.
The government has asked CPC Corp, Taiwan (台灣中油) and China Steel Corp (中鋼) to help stabilize domestic fuel and steel prices, the agency said.
In the first seven months of the year, the CPI increased 1.54 percent, while the WPI rose 6.72 percent, the DGBAS said.
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