Taiwan’s consumer price index rise in July on support from higher food prices

Consumer price inflation in Taiwan during the month of July rose, compared to a year earlier period, strongly supported by rise in food prices. However, transportation costs fell from a year earlier period, coupled with living costs, following drop in natural gas prices and decline in electricity tariffs.

On a month-on-month basis, the July CPI was up by 0.22 percent. After seasonal adjustments, the July CPI rose 0.20 percent from a month earlier, data released by the Directorate General of Budget, Accounting and Statistics (DGBAS) showed Friday.

Further, the core CPI, which excludes vegetables, fruits and energy, rose 0.79 percent from a year earlier in July, while the index excluding vegetables and fruits added 0.1 percent year-on-year in the month. In July, food prices rose 5.54 percent from a year earlier largely in reflection of more expensive fruits caused by unfavorable weather conditions.

According to the DGBAS, prices of eggs, fish, and meat rose 7.43 percent, 4.76 percent and 1.44 percent, respectively, from a year earlier, while dining-out costs also gained 1.45 percent year-on-year in the month.

However, transportation costs fell 1.26 percent from a year earlier in July after fuel prices shed 6.77 percent, while living costs were down by 0.83 percent on the back of a 16.07 percent drop in natural gas prices and 11.68 percent decline in electricity tariffs.

Meanwhile, In July, the wholesale price index (WPI) fell 2.41 percent from a year earlier, marking the 23rd consecutive month of decline since prices of chemical materials, oil and coal products fell in the month. But, the July WPI rose 0.57 percent from a month earlier.