CPI growth surpasses 2% alert level for 4th straight month in August

Taipei, Sept. 5 (CNA) Taiwan's consumer price index (CPI) rose 2.36 percent in August, the fourth consecutive month in which year-over-year inflation breached the 2 percent alert level set by the local central bank.

Figures released by the Directorate General of Budget, Accounting and Statistics (DGBAS) Thursday showed that on a month-over-month basis, the CPI rose 0.40 percent, or 0.07 percent with seasonal adjustments.

August's figure was lower than July, when year-over-year CPI growth hit 2.53 percent.

In the first eight months of this year, the CPI rose 2.32 percent from a year earlier, also above the 2 percent inflation reading, according to the data.

In August, food prices rose 4.64 percent from a year earlier after Typhoon Gaemi, which hit Taiwan in late July, cut fruit and vegetable supplies and boosted prices by 24.16 percent and 11.92 percent from a year earlier, respectively.

Speaking with reporters, DGBAS specialist Tsao Chih-hung (曹志弘) said that as the weather has been stable recently and vegetable cultivation has resumed smoothly, fruit price increases have moderated.

As a result, the consumer price surge in August was smaller than expected, Tsao said.

The price of cooking oil rose 7.79 percent, while dining out costs grew 2.90 percent, the DGBAS data showed.

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 0.06 percent from a year earlier in August after a 0.06 percent increase in July, the DGBAS said.

The decline largely reflected a 13.12 percent fall in egg prices, the DGBAS said.

In addition, the core CPI, which excludes vegetables, fruit and energy, rose 1.80 percent from a year earlier in August, the lowest growth in seven months.

With the core CPI growth continuing to moderate from 2.22 percent in the first quarter of this year to 1.82 percent in the second quarter, Tsao said this indicated inflationary pressure has been easing.

However, Tsao said future attention should be paid to changes in the price of services, particularly medical expenses, dining out and rent.