Taiwan's consumer price index eases to 0.69% in January (update)

Taipei, Feb. 5 (CNA) Taiwan's consumer price index (CPI) in January rose 0.69 percent from a year earlier, the lowest level in five years, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said Thursday.

Core CPI, which excludes fruit, vegetables and energy, rose 1.24 percent from a year earlier, remaining below the 2 percent inflation alert threshold, established by the central bank.

DGBAS Senior Executive Officer Tsao Chih-hung (曹志弘) explained that the moderating CPI growth in January reflected a relatively low comparison base over the same period of last year, when the Lunar New Year holiday fell.

Tsao said after excluding seasonal service-related price factors this January, the increase remained below 1.5 percent, indicating that overall price pressures are stable.

According to DGBAS statistics, the January CPI for key goods rose 3.12 percent from a year earlier, marking the largest increase in nearly two years. Egg prices, in particular, surged 18.31 percent year-on-year, the highest in 33 months.

Tsao said the main reason was that egg prices fell more than 20 percent during the same period last year, creating a low base for comparison.

Dining out expenses rose 3.08 percent in January from a year earlier, and although the increase has exceeded 3 percent for 15 consecutive months, the rate of growth has begun to ease.

Tsao noted that the domestic goods price index has posted negative growth for 10 consecutive months, keeping upstream prices stable. This helps contain manufacturers' costs from raw materials to intermediate inputs, and together with moderate prices for goods, it has helped ease the pressure on dining-out expenses.

Meanwhile, the year-on-year increase in rent in January fell below 2 percent, dropping to 1.99 percent, the first time in two and a half years, he said.

Looking ahead, Tsao said February's CPI growth is expected to be higher than January, but the average for the first two months is estimated to remain below 1.5 percent, indicating that overall price pressures will stay stable.