Taiwan’s Consumer Price Index decreased 0.94 percent in January from the year before largely due to lower energy costs, according to the Directorate-General of Budget, Accounting and Statistics Feb. 5.
“A drop in the retail price of consumer electronics and a higher comparison basis year on year are contributing factors behind the biggest CPI decline in 62 months,” a DGBAS official said.
According to the official, a rebate program implemented last month by state-run Taiwan Power Co. corresponded to a 24.72 percent fall in the average monthly electricity bills. Gasoline prices also plunged 29.52 percent, the sharpest decline since December 2008.
Among the seven major expense items covered by the survey, transportation and communication experienced the biggest downturn of 7.03 percent. Miscellaneous, living and entertainment expenditures dropped 3.99 percent, 2.17 percent and 1.51 percent, respectively.
Food costs rose 4.45 percent, spurred by higher prices for vegetables, eggs and meat, up 20.21 percent, 13.19 percent and 9.5 percent, respectively, but partially offset by a 2.63 percent reduction in fruit prices. The cost of clothing and medical care inched up 1.15 percent and 0.44 percent.
Taiwan’s CPI climbed 1.2 percent in 2014. This is higher than that of Singapore at 1 percent, but lower than South Korea at 1.3 percent, mainland China at 2 percent, Japan at 2.7 percent and Hong Kong at 4.4 percent.
The National Development Council said tight poultry supply following the outbreak of avian flu last month is inflating prices of eggs and meat. But these will be kept in check in the run up to the Lunar New Year through the monitoring efforts of the Cabinet-level price stability taskforce, the NDC added. (SFC-JSM)
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