Con­sumer Price In­dex down by 0.66% in July: gov­ern­ment

The China Post - - TAIWAN BUSINESS -

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.

CNA

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.

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