Taiwan consumer prices drop for 8th straight month in September

10/08/2020 08:21 PM
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CNA file photo
CNA file photo

Taipei, Oct. 8 (CNA) Consumer prices in Taiwan fell in September from a year earlier for the eighth consecutive month, mainly on lower international crude oil prices, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Thursday.

DGBAS data showed that the consumer price index (CPI) for September dropped 0.58 percent year-on-year.

However, the core CPI, which excludes vegetables, fruits and energy, rose 0.25 percent from a year earlier, the data indicated.

The costs of basic commodities such as transportation, communications, vegetable and fruit, however, dropped slightly in September from the previous month, according to the data.

While the September CPI fell, largely because of a 16.49 percent drop in international crude prices, the rise in the core CPI means there are no concerns about deflation in Taiwan, DGBAS specialist Chiu Shu-chun (邱淑純) said.

Chiu said she had anticipated an eventual stabilization of Taiwan's CPI as fuel prices had been showing recent signs of recovering, but they dropped again after United States President Donald Trump tested positive for COVID-19 last week.

"Before the U.S. presidential election, there is no knowing what can happen," she said, referring to Taiwan's consumer price index.

Meanwhile, due to the low oil prices, food costs in Taiwan have been relatively stable in the last few months, prompting an increasing number of restaurants to offer attractive prices on their menus, Chiu said.

The index for takeout meals rose only 0.69 percent in September, the smallest increase in 115 months, she said.

According to the DGBAS, Taiwan's domestic consumption continues to gain momentum, as consumer spending is showing no signs of stagnation.

(By Pan Tzu-yu and Ko Lin)

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