COST OF LIVING/Taiwan's CPI grows 2.42% in June

Taipei, July 5 (CNA) Taiwan's consumer price index (CPI) rose 2.42 percent from a year earlier in June following a spike in food prices, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Friday.

Data compiled by the DGBAS showed the June CPI surpassed a 2 percent alert set by the central bank for the 2nd consecutive month after a 2.23 percent year-on-year increase in May.

The core CPI, which excludes vegetables, fruit and energy, rose 1.83 percent from a year earlier in June, below the central bank's 2 percent target.

On a month-on-month basis, the CPI rose 0.31 percent and after seasonal adjustments, the index also grew 0.26 percent, the data indicated.

In the first six months of this year, the local CPI growth hit 2.27 percent with the core CPI up 2.02 percent, according to the DGBAS.

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In June, food prices rose 4.16 percent from a year earlier with fruit prices soaring 22.60 percent due to bad weather and a relatively low comparison basis over the same period of last year, the DGBAS said.

In addition, prices of edible oil, vegetables and prepared foods also rose 6.23 percent, 4.55 percent and 2.87 percent, respectively, from a year earlier in June, while dining out costs rose 2.78 percent, with many office and production line workers feeling the pinch from higher food prices, according to the DGBAS.

Health care expenses rose 3.78 percent from a year earlier in June after people were required to pay more in registration fees at hospitals and shoulder more costs in outpatient services and emergency treatment under the National Health Insurance scheme, the DGBAS said.

In June, living costs rose 2.27 percent from a year earlier with electricity rates and rents rising 5.21 percent and 2.59 percent, respectively, the DGBAS added.

However, the cost of a basket of 17 government-monitored household necessities, including rice, pork, bread, eggs, sugar, cooking oil, instant noodles, shampoo and toilet paper, fell 0.14 percent from a year earlier in June after a 0.60 percent increase in May, the DGBAS said.

The decline largely reflected an 18.17 percent fall in egg prices, while cheaper toilet paper and fresh milk also pushed down the prices of the 17 household items, the DGBAS added.

PPI

In June, the producer price index (PPI) rose 3.54 percent from a year earlier largely due to an increase in the price of power equipment, chemical materials, computers, electronics/optoelectronics devices and electronics components, the DGBAS said.

The import price index rose 3.57 percent from a year earlier in June in Taiwan dollar terms but dropped 1.42 percent in U.S. dollar terms, while the export price index rose 5.07 percent in Taiwan dollar terms and also grew 0.01 percent in U.S. dollar terms, the data showed.

In the first six months of the year, the PPI rose 1.37 percent from a year earlier, according to the DGBAS.