Taiwan’s march CPI growth tops 3%. Highest increase in 9yrs

Taiwan’s consumer price index (CPI) rose by over 3 percent in March, marking its highest increase in more than nine years, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Friday.

In the wake of more expensive imported commodities, the local CPI rose by 3.27 percent from a year earlier, says Focus Taiwan.

The pace of price increases in Taiwan accelerated further in Mar-22, with the headline CPI inflation rising to 3.3%yoy (Feb-22: +2.3%yoy).

Faster inflation was recorded across all components particularly higher food price inflation. Rising prices of especially vegetables (+24.3%yoy) and eggs (+23%yoy) were attributable to supply constraints and rising production costs.

Crude oil and CPI growth

Meanwhile, transport & communication CPI also accelerated mainly because the increase in crude oil prices led to +19.2%yoy surge in fuel and lubricants prices.

The higher inflation was in line with the central bank’s concern about elevated price pressures, which would support for further policy tightening.

However, with the uncertainties from extended lockdown in Shanghai, ongoing conflict in Ukraine, and resurgence in Covid-19 cases, Taiwan’s central bank will need to balance its policy priority between containing high inflation and sustaining economic growth. – MIDF

Photo from Trading Economics