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Government sees consumer price index to rise below 2%

Government sees consumer price index to rise below 2%

Taipei, April 30 (CNA) The Directorate-General of Budget, Accounting and Statistics (DGBAS) on Monday adjusted upward its forecast for the consumer price index's growth in 2012 to 1.94 percent, up by 0.48 percentage points from the 1.46 percent it projected in February. The adjustment was made because of price fluctuations mainly caused by fuel price hikes on April 2 and the government's plan to raise electricity prices in mid-May, said Kao Chih-hsiang, a DGBAS division chief responsible for economic forecast. The fuel price hikes by 7 to 11 percent were anticipated to lead the consumer price index to grow by 0.24 percentage points this year, while the planned electricity price adjustment was seen to cause the index to move higher by 0.46 percentage points, Kao noted. The projections were made under the presumption that manufacturers pass the increased costs resulting from fuel and electricity price hikes on to consumers, he explained. Apart from the fuel and electricity price hikes, other factors that prompted the agency to revise the consumer price index include fluctuations of international raw materials, which, however, did not affect the index's growth rate so much as the fuel and electricity price hikes did, the official said. Kao also attributed the index's expected growth by under 2 percent to drops on the prices of agricultural and industrial raw materials on the international market. Citing Chicago Mercantile Exchange futures indexes, those of corn, soy bean, wheat, sugar and cocoa have dropped by 5.3 percent in April from the previous forecasts, he noted. (By Lin Hui-chun and Elizabeth Hsu)


Updated : 2021-05-16 11:47 GMT+08:00