Consumer Price Index down by 0.66% in July: government
Taiwan’s consumer price index for July fell 0.66 percent from a year earlier due to a further decline in fuel prices and a cut in electricity rates, government statistics showed Wednesday.
Falling fruit prices due to lower-than expected demand during the Dragon Boat Festival were also cited as a reason for the contraction of local consumer prices in July, the Directorate General of Budget, Accounting and Statistics (DGBAS) said. It was the seventh consecutive month for the local CPI to register a fall.
In the first seven months of this year, the CPI fell 0.65 percent from a year earlier, the DGBAS said.
In July, the local CPI fell 0.13 percent from a month earlier, and after seasonal adjustments, the local consumer prices also fell 0.78 percent month- on- month, the government agency said.
Despite the further decline in the local CPI, Tsai Yu-tai, deputy director of the DGBAS’s census department, said Taiwan was not facing deflationary pressures since the core CPI, which excludes vegetables, fruits and energy, still grew in a stable manner over the past seven months.
The DGBAS data showed that core consumer prices were up 0.66 percent year-on-year, and the core CPI grew 0.85 percent from a year earlier during the January July period.
In July, living costs in Taiwan fell 0.76 percent from a year earlier after fuel prices and electricity rates shed 24.75 percent and 4.47 percent year-on-year, The DGBAS said. It said that the decline in fuel prices reflected a plunge in international crude oil prices.
Food prices here rose 1.77 percent year-on-year in July with vegetable prices, frozen food prices, meat prices and dining-out services costs up 4.06 percent, 6.09 percent, 2.44 percent and 1.69 percent, respectively.
However, the prices for eggs and fruits fell 11.05 percent and 1.32 percent from a year earlier, respectively, in July, offsetting the impact resulting from a rise of prices of other food items. The DGBAS said the cost of basket of 17 government-
a monitored household necessities, including rice, pork, bread, eggs, sugar, cooking oil, shampoo and toilet paper, rose 0.64 percent year-on-year in July, after a 0.51 percent increase seen in June. The agency said that the data showed that local consumer prices remained stable.
In July, Taiwan’s wholesale price index (WPI) fell 9.98 percent from a year earlier, the steepest decline since August 2009, when the WPI dropped 11.01 percent year-on-year, the DGBAS said.
It said the July fall in the WPI largely reflected falling international crude oil prices and weakening agricultural and industrial raw materials prices which resulted in cheaper imported raw materials for the month.
In the first seven months of this year, Taiwan’s CPI fell 9.11 percent from a year earlier, the government data showed.
Based on the 0.66 percent decline in the July CPI, the DGBAS said that a household with monthly expenses of about NT$ 60,000 ( US$ 1,893) cut its spending by NT$396 from the same period last year.
The Directorate-General of Budget, Accounting and Statistics announced yesterday that July’s consumer price index dropped 0.13 percent compared with June. The main factors cited in the decline were price drops on vegetables due to massive yields exceeding market demands, expanded promotions by clothing retailers and reduced gasoline prices.