《TAIPEI TIMES》Inflation soars to 2.71 percent

COSTLIER TRIPS: Entertainment and education became even more expensive, while overseas tour charges surged 25.64% and hotel rates rose 15.17%, a DGBAS official said

By Crystal Hsu / Staff reporter

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The consumer price index （CPI） last month picked up 2.71 percent, accelerating from 2.35 percent in November, as all consumption categories grew more expensive, especially vegetables and travel costs, the Directorate-General of Budget, Accounting and Statistics （DGBAS） said yesterday.

The inflationary gauge is expected to climb higher, but remain below 3 percent this month when the upcoming Lunar New Year holiday would bolster prices for goods and services, DGBAS official Tsao Chih-hung （曹志弘） said.

“It is better to combine the data of January and February to gain a better understanding of price trends,” Tsao told an online news conference, adding that the 11-day holiday falls entirely in January this year, but spanned the first two months last year.

Vegetable prices spiked last month because cold weather disrupted supply, Tsao said, adding that the prices of fish and eggs advanced more than 20 percent.

Overall food prices, the largest chunk of the CPI, increased 4.93 percent, suggesting that the public would be feeling the pinch, the official said.

The CPI reading after seasonal adjustments edged up 0.33 percent, while core CPI, a more reliable long-term price tracker after stripping out volatile items, expanded 2.71 percent, the statistics agency’s monthly survey showed.

Inflationary pressure might mitigate in March in the absence of fresh shocks when an unfavorable base effect induced by Russia’s invasion of Ukraine would end, Tsao said.

Transportation costs rose 2.18 percent as international oil prices increased 5.42 percent, but should come under control in light of an ongoing global economic slowdown that would curtail demand, he said.

Entertainment and education became more expensive, while overseas tour charges surged 25.64 percent and hotel rates rose 15.17 percent, he said, adding that the uptick would be sustained by strong demand over the winter.

Prices for housing gained 2.4 percent, as landlords raised rents to reflect interest rate hikes and home repair materials became more costly, the survey found.

The wholesale price index （WPI）, a measure of commercial production costs, last month advanced 7.14 percent, easing from 9.11 percent in November, showing that imported inflationary pressure was lingering, though subduing, Tsao said.

The local currency’s deprecation against the US dollar contributed to imported inflation, the DGBAS said.

For the whole of last year, consumer prices rose 2.95 percent, the highest in 14 years, driving the central bank to raise interest rates four times to tame inflation.

The monetary policymaker has said it might have to tighten further this year to bring the reading below its 2 percent target.

The WPI last year logged a 12.43 percent increase year-on-year.

新聞來源：TAIPEI TIMES