Taiwan consumer prices tick higher in June owing to sharp jump in fruit prices

Consumer price inflation in Taiwan rose in June owing to a sharp rise in fruit prices, which soared due to two consecutive dramatic typhoons last year and a cold wave early this year. Natural calamities shook the agricultural base of the economy, which in turn, took a toll on food prices.

Taiwan's consumer price index (CPI) rose 0.9 percent in June compared with the same month of last year because of higher food prices, data released by the Directorate-General of Budget, Accounting and Statistics (DGBAS) showed Tuesday. On a monthly basis, consumer prices increased 0.3 percent.

Food prices in June were 4.55 percent higher year-on-year, with the costs of fruit, vegetables, eggs, meat, fish, certain processed foods and dining-out expenses all on the rise, the data showed. On the other hand, fruit prices soared 35.8 percent in June from a year earlier, posting the biggest monthly gain in nearly 11 years.

Moreover, core inflation, which excludes fruit, vegetables and energy, was 0.80 percent in June, signaling that consumer prices in Taiwan were relatively stable. However, the rise in food prices was partly offset by lower prices in June for fuel, electricity and consumer electronic products, the DGBAS report added.

Meanwhile, the wholesale price index (WPI) fell for the 22nd consecutive month on a year-on-year basis in June, dropping 2.67 percent, the DGBAS said. The import price index fell 2.05 percent in Taiwan dollar terms in June, the lowest pace of decline since September 2014.