Taiwan faces rising prices as Iran war drives up costs: CRIF

Taipei, March 24 (CNA) Taiwan faces rising risks to consumer prices and energy supply as the United States-Iran war enters its fourth week, with pressure building on supply chains and household costs, according to credit information agency CRIF Taiwan.

CRIF said continued conflict could affect energy supply stability, oil prices, consumer prices and exchange rate movements in Taiwan.

The agency said the ongoing blockade of the Strait of Hormuz could prevent natural gas shipments from Qatar from arriving on schedule, increasing pressure on Taiwan's supply.

CRIF noted that companies face compounded pressure when oil prices rise and the Taiwan dollar weakens because crude oil and natural gas imports are priced in U.S. dollars.

The organization said oil prices rising from US$80 to US$120 per barrel, combined with depreciation of the Taiwan dollar from NT$31 to NT$32.5 per U.S. dollar, would subject companies to simultaneous oil price and currency losses.

CRIF said the Taiwan dollar's real purchasing power has declined by about 3 percent to 5 percent since the war began, increasing inflation pressure on imports.

The agency reported that diesel costs used in bulk logistics have increased delivery and courier fuel surcharges by about NT$5 to NT$10 per order.

CRIF said increased air and sea freight surcharges have raised import costs, with supermarket prices for imported beef, dairy products and fruit rising by about 8 percent to 12 percent.

The organization projected that beginning in April, large restaurant chains may introduce price increases of about 5 percent to 10 percent due to rising ingredient and transportation costs.