Inflation in January hits 11-month high

Taipei-- Taiwan's consumer price index (CPI) rose 2.25 percent in January from a year earlier, the highest year-on-year growth level in 11 months, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Wednesday.

The DGBAS said the faster-paced inflation reflected more expensive meat, fish, fruit and gasoline during the month and higher prices for services such as taxi and group tour fares leading into the Lunar New Year holiday period, which lasted from late January to early February.

The higher prices were offset by a fall in vegetable, egg, household electricity, natural gas, communications and 3C consumer electronics products prices in January compared to their level in the same month in 2016, the DGBAS said.

On a month-on-month basis, inflation fell 0.02 percent in January from the previous month, with higher prices for services, entertainment and transportation, electricity and natural gas offset by lower prices for food (especially vegetables) and clothing, the DGBAS said.

The wholesale price index rose 2.72 percent in January from a year earlier, the highest monthly rise in five years, mainly because of higher crude oil, natural gas and chemical prices.

Tsai Yu-tai (???), deputy director of the DGBAS's census department, said core CPI, which excludes vegetables, fruit and energy, rose 1 percent year-on-year after seasonal adjustments, indicating that consumer prices were fundamentally stable.

Based on the January rise, the DGBAS said a household with monthly spending of about NT$60,000 (US$1,930) had to spend an additional NT$1,350 during the month compared with a year earlier.

The household had to spend an additional NT$365 on fuel, NT$335 on fruit and NT$103 on dining out during the month, the DGBAS added.

The wholesale price index rose 2.72 percent in January from a year earlier, the highest monthly rise in five years.

Source: Focus Taiwan News Channel