Taiwan's CPI growth hits a new high in April

The consumer price index (CPI) in Taiwan, a main gauge of inflation, rose by 3.38 percent year on year in April, hitting a new record high, according to data released by the statistics agency. In the first four months of this year, average CPI rose by 2.95 percent compared with the same period last year, says Xinhua.

Prices in Taiwan increased at a faster pace in Apr-22, with the headline CPI rising by +3.4%yoy (Mar-22: +3.3%yoy), the highest since Aug-12.

The stronger-than-expected inflation was driven by increased CPI for foods (+6.9%yoy); transportation & communication (+5%yoy); and housing (+1.8%yoy).

Core CPI in Taiwan

The core CPI inflation remained high at +2.5%yoy, indicating that the growing demand pressures also pose upward pressures on consumer prices.

Like other countries, Taiwan is also facing challenges from rising inflation which can be linked to both demand pressures and supply constraints.

“We opine that the high commodity prices would push prices higher, particularly for the food and transport charges. In addition, the high inflation may prompt the central bank to consider tightening its monetary policy again as the underlying demand pressure remained strong,” says MIDF.

Photo: Xinhua