The nation’s consumer price index (CPI) last month rose 1.55 percent year-on-year, the mildest increase for the same month in four years and below the central bank’s 2 percent target, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
The agency attributed the result to sharp declines in food and energy prices.
Core CPI — which strips out volatile food and energy components — rose 1.61 percent year-on-year last month, also showing signs of moderation, it said.
Photo: CNA
“The inflationary gauge is likely to slacken further this month given current favorable weather for crops and a high base last year,” DGBAS official Tsao Chih-hung (曹志弘) said.
CPI growth should stay below 2 percent through the second half of the year, with electricity rates held intact, raw material prices falling and cheaper import costs, Tsao said.
However, Tsao said that structural inflationary pressures remain, as dining-out costs rose 3.5 percent last month, the fastest pace in 15 months amid continued increases in the cost of ingredients and labor.
In addition, 17 key consumer goods tracked by the Executive Yuan continued to show steady price gains, up 0.8 percent from a year earlier, marking a third consecutive month of increases, he said.
In terms of CPI components, food prices rose 3.09 percent year-on-year as fruit prices surged 18.56 percent on limited supply, while meat and dining-out costs climbed 4.8 percent and 3.5 percent respectively.
These gains were partially offset by falling egg and vegetable prices, the DGBAS said.
Prices of miscellaneous goods grew 2.44 percent, driven by a 6.52 percent jump in personal accessories such as jewelry, and price hikes in personal care and tobacco products, the agency said.
Healthcare costs rose 2.18 percent, as medical facilities raised registration fees and charges for services such as dentures and orthodontics, it added.
Shelter costs advanced 1.8 percent, led by rises in rent and household service costs. Rents increased 2.28 percent, decelerating from previous months, but still elevated, Tsao said.
The government is to review the minimum wage later this year and any potential increase would not go into practice until next year, he said.
Meanwhile, the producer price index (PPI), a measure of the price movements of goods from a seller’s perspective, last month fell 4.3 percent year-on-year, reflecting prevalent declines in global commodity prices, including oil, chemicals, metals and semiconductors, Tsao said.
The retreat was amplified by the New Taiwan dollar’s 7.09 percent appreciation versus the US dollar in the month, he said.
Tsao pointed to weakened global demand amid ongoing US-China tariff tensions as a key reason for broad-based declines in raw material prices such as corn, soybeans and industrial metals.
For the first five months of this year, the CPI increased 2.04 percent, while the PPI grew 1.45 percent from the same period last year, the DGBAS said.
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