August CPI below 2%, but low-income still pressured

Taipei, Sept. 7 (CNA) Taiwan's consumer price index (CPI) rose 1.6 percent in August, staying below the 2 percent alert level for the fourth straight month, but low-income households continued to feel sharper price pressures, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).

The uptick, from 1.53 percent in July, was mainly driven by typhoons and heavy rain that pushed up prices for vegetables, pork and dining out, the agency said Friday when it released August CPI data.

While overall inflation pressure has eased, a breakdown by income groups showed that low-income households continued to shoulder a heavier burden, the data indicated.

Their CPI rose 1.82 percent in August from a year earlier, higher than the overall index, compared with 1.62 percent for middle-income households and 1.5 percent for high-income households.

From January to August, CPI for low-income households climbed 2.03 percent, above the 2 percent alert line, while the increases for middle- and high-income households were 1.89 percent and 1.7 percent, respectively, the data showed.

The agency noted that CPI for low-income households has historically run higher than the overall index, as food -- the main driver of recent price hikes -- takes up a greater share of their spending.

Among the major categories in the CPI, food prices rose the most in August, up 3.18 percent, followed by miscellaneous items (2.59 percent), housing (1.8 percent), healthcare (1.75 percent), and education and recreation (1.26 percent).

Clothing dropped 0.85 percent, while transportation and communications fell 1.34 percent.

The DGBAS said short-term weather factors had temporarily driven up prices but predicted CPI growth could ease in September if conditions stabilize. Still, essential goods will likely keep low-income households under greater strain, it added.