The consumer price index (CPI) last month eased to 1.58 percent, falling below the central bank’s 2 percent target, as prices for food and services grew at a less-marked pace, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
However, the inflationary gauge for the first two months registered a 2.12 percent increase, suggesting prices continued to gain beyond the central bank’s comfort level, the statistics agency said.
The high base last year and the timing of the Lunar New Year means that it is better to average the data from January and February to gain a better understanding of price trends, the DGBAS said.
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The CPI after seasonal adjustments edged up 0.25 percent, but shed 0.43 percent from one month earlier, affirming a slowdown, it said.
The core CPI, a more reliable long-term price tracker because it excludes volatile energy, vegetable and fruit prices, posted a 0.98 percent uptick after services squeezed a benign 0.89 percent advance, the DGBAS said.
Among the major consumption categories, food saw the most significant price hike of 3.98 percent after fruit prices surged 17.16 percent due to the lingering effects of earlier heavy rainfall, it said.
Additionally, vegetable prices jumped 13.74 percent, while dining-out costs rose by 3.14 percent, the DGBAS said.
The only notable price drop was in eggs, which fell by 22.2 percent, partially offsetting overall food inflation, it said.
However, prices for the 17 essential consumer goods items the government has monitored weakened 0.44 percent from a year earlier, it said.
Shelter costs also recorded considerable increases at 2.18 percent, driven by a 2.56 percent hike in rent, along with electricity and home repair costs rising by 4.48 percent and 2.64 percent respectively, it said.
At the same time, prices for medicine and healthcare advanced by 1.9 percent, while education and entertainment costs grew 1.04 percent, both mitigating from previously, it said.
The producer price index (PPI) — a measure of the price movements of goods from a seller’s perspective — increased 3.49 percent, as agricultural products, electronics and personal computers became more expensive, it said.
Taiwanese PC brand Acer Inc (宏碁) said that it would raise prices for laptops made in China and bound for the US market, after US President Donald Trump added tariffs on imports from China.
The PPI grew at an average of 3.68 percent in the first two months, it said.
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