Consumer prices in Taiwan rose more than 2 percent in August, driven mainly by an increase in food and fuel prices, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Tuesday.

According to the DGBAS, the consumer price index (CPI) climbed 2.36 percent in August from a year earlier, marking the third time so far this year that it breached the government’s target of 2 percent. In April and May, the CPI rose 2.09 percent and 2.45 percent, respectively.

The DGBAS’ data for August showed that food prices increased 3.84 percent from a year earlier, with the prices of fruits and vegetables rising 35.22 percent and 3.60 percent, respectively, due to agricultural damage caused by heavy rains.

Transportation and communications costs jumped 6.51 percent from a year earlier, with fuel prices showing a 23.24 percent hike due to a relatively low comparison base over the same period last year, the DGBAS added.

There was no concern, however, about inflationary pressure, as the prices of fruits and vegetables are expected to stabilize with the improved weather and as the comparison base moderates, said Tsao Chih-hung (???), a specialist at the DGBAS.

In addition, Tsao said, the core CPI, which excludes vegetables, fruits and energy, rose 1.33 percent in August from a year earlier, well below 2 percent, which indicated no inflationary pressure.

According to Tsai, the consumer price growth in Taiwan may start to moderate to below 2 percent in the fourth quarter of the year.

In August, 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 2.98 percent from a year earlier, after a 2.99 percent increase in July, the DGBAS data showed.

Among the 17 items, pork saw the biggest price hike, soaring 7.20 percent from a year earlier to the highest in six and half years, due to the increased cost of pig feed, according to the data.

Meanwhile, the wholesale price index (WPI) surged 11.88 percent in August from a year earlier, largely reflecting an increase in the prices of base metals, oil and coal products, chemicals, and drugs, the DGBAS said.

The import price index rose 12.56 percent in August from a year earlier in Taiwan dollar terms and was up 19.10 percent in U.S. dollar terms, while the export price index grew 8.62 percent in Taiwan dollar terms and climbed 14.94 percent in U.S. dollar terms, the data showed.

In the first eight months of the year, the local CPI grew 1.64 percent from a year earlier, with the core CPI up 1.18 percent, while the WPI rose 7.43 percent year-on-year, according to the DGBAS data.

Source: Focus Taiwan News Channel