Taiwan' s CPI Growth Hit 11-Month High of 2.65% in January 2006

Taipei, Feb. 13, 2006 (CENS)--The annual rise of Taiwan' s consumer price index (CPI) hit an 11-month high of 2.65% in January, according to the statistics compiled by the Cabinet-level Directorate General of Budget, Accounting & Statistics (DGBAS).

DGBAS attributed the rise mainly to the hikes in transportation and service charges, particularly those for cabs, beauty saloons, and restaurants, during the Chinese New Year holidays, which fell on the month. If excluding the consumption during the holidays, the annual growth of CPI would stand at merely 1.2%; while the core CPI, excluding the prices for fresh vegetables, fruits and fish as well as energy, would rise by 1.37%.

In the same month, the wholesale price index (WPI) saw the third consecutive monthly rise of 1.04%, mainly because of the continued international oil hike during the month.

DGBAS officials indicated that domestic prices of gasoline and related products are expected to be hiked sometime this year as international crude oil price remains high. They said for every 10% hike in the domestic oil prices, the CPI might edge up by 0.2%. However, domestic consumers might not feel the impact of the climbing consumer prices, as the domestic oil prices would be hiked step by step.

DGBAS statistics showed that the prices of imported products chalked up by 5.24% for the fifth consecutive month in January. Market observers said that the import price rise was due partly to the New Taiwan dollar depreciating 0.59% against the U.S. dollar in January, compared with one year earlier, and partly to the prices remaining high for such raw materials as petroleum, naphtha, and iron ore.

However, the prices of exported products dropped by 1.82% in January from a year earlier. Among the exported items, basic metal and related products witnessed a sharp price fall of 7.96%, and transportation vehicles & related parts 5.48%.