March consumer prices drop 0.61 percent in Taiwan

2015-04-10

Taiwan’s Consumer Price Index decreased 0.61 percent year on year in March largely due to lower energy costs stemming from weak global oil prices, according to the Directorate-General of Budget, Accounting and Statistics April 8.

“Reduced costs for fruit and consumer electronics also played a part in the third consecutive decline in a row,” a DGBAS official said. “Excluding the prices of energy, fruit and vegetables, core CPI was up 1.12 percent in the month.”

While CPI fell 0.59 percent for the first three months, and is expected to continue trending down in the coming quarter, there is no risk of deflation in sight, the official added.

Among the seven major expense items covered by the survey, transportation and communications experienced the biggest downturn of 6.3 percent, bringing the total drop to more than 20 percent in the past four months. Living and entertainment expenditures inched down 0.42 percent and 0.03 percent, respectively.

Food costs rose 1.44 percent, spurred by higher prices for vegetables, eggs, meat and seafood, up between 3.02 percent and 3.96 percent, but partially offset by a decrease of 9.14 percent in fruit costs. The prices of clothing and miscellaneous items gained 0.87 percent and 0.35 percent.

Pork prices rose 5.67 percent year on year in March, mainly caused by the outbreak of avian flu in mid-January. Increasing supply and weaker demand after the Lunar New Year holidays have seen the auction prices of pork drop 17.87 percent from a month ago, according to the National Development Council.

Consumers can also look forward to lower monthly utility bills, the NDC said. Under the new rates implemented by state-run Taiwan Power Co. beginning this month, average reductions are 7.36 percent for commercial users, 7.31 percent for industrial firms and 7.55 percent for households.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=229098&CtNode=413)