Consumer prices in Taiwan rose 2.62 percent in December from a year earlier, remaining above the government’s 2 percent inflationary alert level for the fifth consecutive month, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported Thursday.

According to the DGBAS, the consumer price index (CPI) climbed 2.62 percent year-on-year in December, though this was still lower than the 2.84 percent year-on-year growth in November, the biggest year-on-year jump in 102 months.

The 2.62 percent growth was mainly driven by an increase in the price of airline tickets, fruit, vegetables, eggs, meat and clothing.

Month-on-month, the CPI fell 0.21 percent in December, and after seasonal adjustments, the decrease was 0.06 percent, according to data compiled by the DGBAS.

The DGBAS data also showed that Taiwan’s CPI increased 1.96 percent for 2021, which although below the government’s 2 percent target was still the biggest annual rise since 2009.

Transportation and communications expenses posted the largest year-on-year growth of 5.08 percent in December when fuel prices and airfares rose 19.55 percent and 14.08 percent, respectively, from a year earlier, the DGBAS said.

The DGBAS data also showed that food prices increased 4.23 percent in December from a year earlier, due mainly to the effects of agricultural damage caused by poor weather conditions over the past few months.

The price of fruit rose 21.61 percent, while the price of eggs, meat and vegetables increased 11.75 percent, 5.49 percent and 3.36 percent, respectively, according to the data.

Of note, the cost of eating out rose 2.39 percent in December from a year earlier, the highest increase in 81 months, BGBAS official Tsao Chih-hung (曹志弘) said, predicting that the cost of eating out will reach a peak after the Lunar New Year holiday before the growth moderates around the second quarter.

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 3.46 percent in December from a year earlier, the biggest increase in 39 months, the DGBAS said.

In December, core CPI, which excludes fruit, vegetables, and energy, rose 1.84 percent year-on-year, the DGBAS said.

Meanwhile, the wholesale price index (WPI) surged 12.25 percent in December from a year earlier, largely reflecting an increase in the price of base metals, oil and coal products, chemical materials, and drugs, the DGBAS said.

The import price index rose 13.30 percent in December from a year earlier in Taiwan dollar terms and was up 16.36 percent in U.S. dollar terms, while the export price index grew 10.83 percent in Taiwan dollars and climbed 13.82 percent in U.S. dollars, the data indicated.

The WPI increased 9.42 percent in 2021 compared to 2020, the biggest jump in 41 years, the agency said.

Source: Focus Taiwan News Channel