Due to the effect of double typhoons,Taiwan's consumer price index in August scored an annual increase rate of 3.42%,a four-year high,and the CPI advanced 1.84%on average in the first eight months,reported the Directorate General of Budget,Accounting,and Statistics(DGBAS)yesterday(Sept.5).
With CPI increasing by 3.42%in August,a local family with average monthly outlay of NT$60,000 will witness NT$2,052 of extra outlay a month than a year earlier,including NT$828 for food and NT$295 for fruit.In addition,eating-out food prices advanced 2.48%in August,a three-year high,imposing heavier burden on eating-out people.
The DGBAS attributed the high CPI growth rate in August to the onset of two typhoons in the month,which boosted produce prices,jacking up the prices of food category by 8.66%.The 3.42%CPI increase rate and 8.66%increase rate for food category are both the highest since September 2008.
The DGBAS just raised in August its forecast for this year's CPI increase rate to 1.93%.Adverse factors to price stability in the second half include the onset of additional typhoon and possible rollout of the third round of quantitative easing policy(QE3)by the U.S.Federal Reserve Board.
Taiwan's 1.84%CPI increase in the first eight months is relatively low,compared with 2.4%increase of South Korea,3.1%of mainland China(for the first seven months),4.9%of Singapore,and 4.3%of Hong Kong.After deducting prices of produce and energy,annual increase of core CPI stood at 0.95%in August,similar to July,both being the highest since February this year.
