Taipei: A spike in service expenses around the Lunar New Year holiday period is expected to raise Taiwan's consumer price index (CPI) growth for February by 0.6 to 0.7 percentage points, according to the Directorate General of Budget, Accounting and Statistics (DGBAS). Speaking with reporters, DGBAS Senior Executive Officer Tsao Chih-hung stated that spending on services such as hairdressing and housekeeping, along with increased taxi and hotel rates, is expected to push up inflation.According to Focus Taiwan, bonuses given to babysitters or caregivers ahead of the New Year holiday are anticipated to further raise CPI growth. Tsao noted that the price of certain foods favored during the holiday period, notably white pomfret, known for symbolizing good luck and prosperity, is also expected to increase.The DGBAS's data revealed that babysitting expenses in January 2025, when the Lunar New Year holiday occurred last year, surged by 38.93 percent from the previous year, marking the highest growth among over 3 00 service items during the month. Housekeeping costs also saw a significant rise of 17.57 percent. Additionally, haircut prices and taxi fares increased by 5.48 percent and 4.99 percent, respectively, while expenses for overseas group tours and domestic hotel room rates rose by 11.78 percent and 6.57 percent, respectively. Pomfret prices grew by 11.87 percent in January 2025.Judging from previous inflation records, Tsao highlighted that these higher expenses, particularly in services, could push up the February CPI growth by 0.6 to 0.7 percentage points. However, a silver lining was noted as chicken and pork prices remained stable or decreased slightly in early February due to a supply glut.In January, Taiwan's CPI grew by 0.69 percent from a year earlier, representing the lowest growth in five years. This was largely attributed to a relatively low comparison base over the same period last year due to seasonal factors. Tsao projected that CPI growth in February is likely to expand because of the boost fr om the upcoming New Year holiday. He also mentioned that when considering the average inflation during January-February, CPI growth could remain below 1.5 percent, staying well under the 2 percent alert set by the central bank, which indicates domestic inflation will remain stable.