Taiwan's CPI Growth Edges Below 3% in September

Taipei, Oct. 15, 2012 (CENS)--The annual growth of Taiwan's consumer price index (CPI) stood at 2.96%, down 0.47 of a percentage point from 3.43% of a month earlier yet the second highest in four years, according to the Directorate General of Budget, Accounting & Statistics (DGBAS).

In the same month the core CPI, excluding prices of fresh food and energy, grew 0.93% YoY, a little lower than the corresponding percentage of the previous two months. In contrast, the wholesales price index (WPI) saw negative YoY growth of 2.19%, the largest fall in three years, which helps ease the current consumer price hike.

In the first nine months CPI showed a moderate YoY growth of 1.96%, still higher than 1.93% predicted in August of this year. To rein in CPI growth, the government has lately lowered import tax on some fruits, mainly kiwi, also extending the tax exemption on corn for another six months.

In September takeout food prices grew 2.56% YoY, a new high of its kind since April of 2009, and the prices of fruits jumped 29% while that of vegetables and meat fell 17.02% and 3.2%, respectively. In mid-August DGBAS cut its forecast on the island's economic growth this year for the eighth time to 1.66%.