Consumer prices fell in May for a second month, leaving the central bank room to lower interest rates further to boost sagging consumer demand.
The consumer price index fell 0.1 percent from a month earlier, seasonally adjusted, after falling 0.1 percent in April, the Directorate General of Budget, Accounting and Statistics (
A slowing economy is holding Taiwan's consumer prices in check. The economy grew at its slowest pace in 26 years in the first quarter, and record unemployment has damped domestic spending.
"There's no risk of inflation, so the central bank can be even more relaxed with its monetary policy," said Matt Yeh, an economist at Taiyu Securities Investment Trust Co (台育證券投信). "There's a good chance it will lower interest rates again." The bank cut its key interest rate six times since December to boost economic growth battered by tumbling exports, falling private consumption and sagging bank lending.
The economy grew 1.1 percent from a year earlier in the first quarter, slowing from the 4.1 percent pace in the fourth quarter as exports and private investment slumped. The government cut its growth forecast for the year to 4.0 percent from 5.3 percent.
Clothing prices fell 0.5 percent from April as retailers offered discounts to boost sales. Food prices, which make up about a quarter of the index, rose 0.2 percent.
The wholesale price index fell 0.28 percent from a month earlier and dropped 1.16 percent from a year earlier.
Taiwan yesterday said it was looking forward to attending an upcoming memorial in Japan to mark the 80th anniversary of the atomic bombing of Nagasaki, a day after the Japanese city said it had retracted its previous decision to not invite Taiwan to the event. The case has been dealt with by Taiwan’s representative office in Fukuoka and the Nagasaki City Government, the Ministry of Foreign Affairs said. The ministry would decide who to send to the Aug. 9 event once it receives the invitation, it added. The ministry made the remarks following a Japanese media report on Saturday that said Nagasaki Mayor
LANDMARK: Taiwan and Haiti are set to mark the 70th anniversary of diplomatic relations next year, the president said, adding that the two would deepen bilateral ties President William Lai (賴清德) yesterday pledged continued support for Haiti, particularly in food aid and healthcare, as the Caribbean nation faces ongoing social and economic challenges. Speaking at a meeting with Haitian Minister of Foreign Affairs Jean-Victor Harvel Jean-Baptiste, Lai said Taiwan would step up bilateral cooperation to help improve Haiti’s social infrastructure. Taiwan would continue supporting Haiti through initiatives aimed at improving healthcare, food security and overall development, he said. Taiwan and Haiti are set to mark the 70th anniversary of diplomatic relations next year, the president said, adding that the two nations would continue to support each other and deepen bilateral
UNILATERAL: The move from China’s aviation authority comes despite a previous 2015 agreement that any changes to flight paths would be done by consensus The Mainland Affairs Council (MAC) yesterday slammed Beijing for arbitrarily opening the M503 flight route’s W121 connecting path, saying that such unilateral conduct disrespected the consensus between both sides and could destabilize the Taiwan Strait and the wider region. The condemnation came after the Civil Aviation Administration of China (CAAC) earlier yesterday announced it “has activated the W121 connecting path of the M503 flight route,” meaning that west-to-east flights are now permitted along the path. The newly activated west-to-east route is intended to “alleviate the pressure caused by the increase of flights,” China’s state-run Xinhua news agency quoted China’s Taiwan Affairs Office
STRONG WINDS: Without the Central Mountain Range as a shield, people should be ready for high-speed winds, CWA weather forecaster Liu Yu-chi said Danas was yesterday upgraded to a typhoon and could grow stronger as it moves closely along the nation’s west coastline, the Central Weather Administration (CWA) said. Hsinchu and Chiayi cities, Taichung, Tainan and Kaohsiung, as well as Hsinchu, Miaoli, Changhua, Yunlin, Nantou, Chiayi, Penghu and Pingtung counties have canceled work and school today. Work and school in Keelung, Taipei, New Taipei City and Taoyuan, and Yilan, Taitung, Hualien, Kinmen and Lienchiang (Matsu) counties would continue as usual, although offices and schools would be closed in Taoyuan’s Luju (蘆竹), Dayuan (大園), Guangyin (觀音) and Sinwu (新屋) districts. As of 5pm yesterday, the typhoon’s
RSS