Taiwan's CPI Growth to be Sub-2% This Year: Perng

Taipei, Oct. 1, 2012 (CENS)--The annual growth of Taiwan's consumer price index (CPI) was 1.84% in the first eight months and the percentage for the full year is estimated to be sub-2% depending on business climate, according to F. N. Perng, governor of the central bank, who said to the legislature that the third round of quantitative easing (QE3) recently by the United States would surely influence the world's economic and financial climate, but less than that of QE1 and QE2.

Perng said that Taiwan's 1.84% CPI growth in first eight months is still lower than South Korea's 2.4% and also lower than that of some other Asian economies. In the first seven months, Singapore's CPI growth stood at 4.9% and Hong Kong at 4.3%, with China's being 3.1% and United States' 2.2%.

Seeing the global economic downturn and commodity price hike in the domestic market, the central bank here has kept the discount rate unchanged for five consecutive quarters, aiming to keep a stable consumer market on the island; but Perng believes the global economy will continue on a downtrend in the coming year.

Taiwan's Jan.-Aug. exports dropped YoY 5.6%, with even bigger drops in the same period to major trade partners as the U. S., Europe and China of 11.9%, 9.3% and 8.7%, respectively.

The Directorate General of Budget, Accounting & Statistics forecasts Taiwan's economic growth to be 1.66% this year and rise obviously to 3.67% next year.