Taiwan CPI rises 1.2% in March; bigger increase expected in April: DGBAS

Taipei, April 8 (CNA) Taiwan's consumer price index (CPI) rose 1.2 percent year-on-year in March, with a sharper increase expected in April, a Directorate-General of Budget, Accounting and Statistics (DGBAS) official said Wednesday.

DGBAS Senior Executive Officer Tsao Chih-hung (曹志弘) said government price-stabilization measures helped contain inflation in March despite a surge in global energy prices.

He noted that the average price of 95-octane unleaded gasoline stood at NT$30.64 per liter in March, slightly lower than NT$30.77 a year earlier, helping ease upward pressure on the CPI.

While oil prices tracked by the Organization of the Petroleum Exporting Countries (OPEC) surged more than 70 percent from February to March, domestic fuel prices rose by only 6.49 percent over the same period, he said.

Stable weather conditions also boosted fruit supply, lowering the CPI by 0.61 percentage points compared with a high base a year earlier, Tsao added.

However, upward pressure is expected to build in April. Tsao said the price of 95-octane gasoline had risen to NT$33.9 per liter by the end of March, meaning that even if prices remain unchanged throughout April, it will still represent about a 10 percent increase from March's average.

In addition, higher fuel surcharges on airline tickets are expected to be reflected in April's CPI.

Tsao also noted that the pace of price increases for dining out accelerated in March, adding that it remains to be seen whether the trend is temporary or linked to rising energy costs.

Looking ahead, he said the high comparison base for fruit prices in 2025 will continue to moderate CPI growth over the next two months, even though April's overall increase is expected to be larger, but still below the 2 percent alert threshold, Tsao said.

Core CPI, which excludes fruit, vegetables and energy, rose 1.94 percent year-on-year in March and is projected to reach around 2 percent in April, he added.

Meanwhile, the import price index rose 8.53 percent from a year earlier, marking the highest increase in 44 months, Tsao said, adding that higher import costs could gradually feed into domestic prices with a lag of one to two quarters.