Taiwan's consumer price index rises 1.74% in April

Taipei, May 7 (CNA) Taiwan's consumer price index (CPI) rose 1.74 percent year-on-year in April, partly due to rising energy prices following tensions in the Middle East, the Directorate-General of Budget, Accounting and Statistics (DGBAS) saying Thursday.

International oil prices climbed above US$100 per barrel after the U.S and Israel attacked Iran in late February, fueling inflation concerns.

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

Fuel prices in April rose after falling in March, with the year-on-year increase jumping to 13.6 percent -- the largest rise in four years since the Russia-Ukraine war began, Tsao said, adding that dining-out expenses and rents also remained elevated, contributing to the rise in April's CPI.

After the outbreak of the Middle East conflict, energy prices were among the first to be affected with the impact clearly reflected in import prices, Tsao said.

Meanwhile, import prices in New Taiwan dollar terms rose 9.22 percent in April, the highest in three-and-a-half years, while the producer price index (PPI) also climbed 8.54 percent, its highest level in the same period, he added.

Core CPI, which excludes fruit, vegetables and energy, rose 1.91 percent from a year earlier, remaining below the 2 percent inflation alert threshold established by the central bank.

Although higher airfares could push up the CPI in May, and the increase is likely to exceed April's 1.74 percent, there is still a "very high probability" it will remain below 2 percent, Tsao said

Reports of a potential U.S.-Iran agreement have recently led to a decline in international oil prices, which he described as a positive sign, adding that developments continue to be monitored.