Consumer price index rises amid fuel cost surge

• By Crystal Hsu / Staff reporter

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Inflationary pressure in Taiwan remained elevated last month, with the consumer price index (CPI) rising 2.33 percent year-on-year, its sixth consecutive month above the central bank’s 2 percent alert, albeit slowing from 2.74 percent in September, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.

The rise was driven in part by a 15.17 percent surge in fuel prices, reflecting higher international oil prices amid lingering tensions in the Middle East and a low comparison base a year earlier, DGBAS Department of Statistics senior specialist Tsai Hsiu-hui (蔡秀慧) said.

Airfares climbed 12.53 percent from a year earlier as airlines raised fuel surcharges and airport service fees. Higher prices for international tour packages, eggs, seafood and rents also contributed, Tsai said.

A vendor weighs food at a market in Taipei’s Shilin District yesterday.

Photo: CNA

Core CPI, which excludes fruit, vegetables and energy to provide a clearer picture of underlying price trends, rose 2.23 percent year-on-year, indicating that price pressures remained broad-based, she said.

Among the seven major CPI categories, transportation and communications prices posted the largest increase, rising 4.36 percent, followed by education and entertainment costs, which climbed 2.94 percent, the DGBAS said.

The increase in education and entertainment costs was largely due to a 9.51 percent rise in educational equipment prices, including computers, related devices and software, amid higher memory prices, it said.

Housing costs rose 2.07 percent, reflecting a 1.7 percent increase in rents, as well as higher prices for gas, household management fees and household goods, it said.

Miscellaneous prices increased 1.75 percent, partly due to a 4.82 percent rise in personal accessories, including gold jewelry, and a 2.16 percent increase in beauty and personal care products, it said.

The increases were offset by a 5.19 percent decline in hotel accommodation costs following the government’s introduction of weekday domestic travel incentives, the agency said.

Personal care service fees fell 0.78 percent, partly because the Mid-Autumn Festival last year fell in October, creating a higher comparison base for gift payments, it said.

CPI growth could remain above 2 percent this month, with the rate potentially accelerating from last month, Tsai said.

Meanwhile, the producer price index (PPI) surged 19.66 percent year-on-year last month, driven by higher prices for petroleum and coal products, computers, and electronic and optical products, the DGBAS said.

The increase also reflected state-run CPC Corp, Taiwan’s (中油) decision to boost natural gas prices for power generators, while lower agricultural product prices provided a partial offset, it said.

For the first 10 months of the year, CPI rose an average of 1.98 percent from a year earlier, while PPI increased 11.12 percent.