Taiwan’s consumer price index (CPI) rose by over 3 percent in March, marking its highest increase in more than nine years, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Friday.
In the wake of more expensive imported commodities, the local CPI rose by 3.27 percent from a year earlier, which was the highest rise since September 2012, when the index grew by 3.42 percent.
The core CPI, which excludes vegetables, fruits, and energy, rose by 2.47 percent from a year earlier in March, the highest since February 2009, when the core CPI rose by 2.73 percent, according to the DGBAS.
On a month-on-month basis, the local CPI rose by 0.31 percent, and after seasonal adjustments, the index also grew by 0.74 percent, the data indicated.
In the first three months of this year, the local CPI rose by 2.81 percent from a year earlier, the data showed.
Speaking with reporters, Tsao Chih-hung (???), a specialist at the DGBAS, said after war between Russia and Ukraine broke out on Feb. 24, the prices of agricultural and industrial raw materials have been trading higher.
Under such unfavorable circumstances, the local CPI is expected to rise by more than 3 percent in April and the growth peak could be recorded in the second quarter, said Tsao.
In the past eight months, Taiwan’s CPI growth topped the 2-percent alert set by the central bank. But, Tsao said the price growth pressure faced by Taiwan was still less than that faced by other economies. In the United States, the CPI surged by 7.9 percent in February, a new high in more than 40 years.
In March, food prices in Taiwan rose by 5.90 percent from a year earlier with vegetable prices soaring by 24.35 percent due to bad weather and a relatively low comparison base over the same period last year, the DGBAS said.
A supply shortage boosted egg prices by 23 percent in March, while the prices of fruits, fishery, and meat rose by 8.53 percent, 6.22 percent and 4.54 percent, respectively, from a year earlier. In addition, dining expenses also grew by 5.26 percent year-on-year in March, the DGBAS added.
Due to rising flour prices, bread prices in Taiwan also increased by 6.63 percent from a year earlier in March, according to the DGBAS.
Transportation and communications fees rose by 5.91 percent from a year earlier in March largely on the back of a spike in international crude oil prices which pushed up fuel prices by 19.20 percent, according to the DGBAS.
Last month, the cost of a basket of 17 government-monitored household necessities, including rice, pork, bread, eggs, sugar, cooking oil, instant noodles, shampoo, and toilet paper, rose by 3.76 percent from a year earlier, marking the second consecutive month that the growth has breached three percent after a 3.17 percent increase in February, the DGBAS data showed.
The DGBAS said the producer price index (PPI) rose by 11.67 percent from a year earlier due to a price increase in crude oil, base metal, electronics components, chemical materials, and drugs. The PPI also grew by 3.43 percent from a month earlier in March, the DGBAS added.
Meanwhile, the wholesale price index (WPI) surged by 13.89 percent from a year earlier in March, largely reflecting an increase in the price of base metals, oil and coal products, chemicals, and drugs, the DGBAS said.
The import price index rose by 17.24 percent in March from a year earlier in Taiwan dollar terms and increased by 16.94 percent in U.S. dollar terms, while the export price index grew by 12.55 percent in Taiwan dollar terms and climbed by 12.28 percent in U.S. dollar terms, the data showed.
In the January-March period, Taiwan’s PPI rose by 11.16 percent from a year earlier with the WPI up 12.38 percent.
In late February, the DGBAS forecast the local CPI would grow by 1.93 percent in 2022. The agency said due to growing inflationary pressure, it was very likely to revise the forecast upward. An update is scheduled to come in May.
Source: Focus Taiwan News Channel