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Inflation in Taiwan falls for sixth month in a row

Inflation in Taiwan falls for sixth month in a row

Taipei, July 7 (CNA) Taiwan's consumer price index (CPI) fell for the sixth consecutive month in June, dropping 0.56 percent year-on-year thanks to falling fuel and natural gas prices, according to government statistics released Tuesday. But Taiwan's CPI in June was up 0.69 percent from the previous month and up 0.17 percent month-on-month after being seasonally adjusted, the Directorate General of Budget, Accounting and Statistics (DGBAS) said. For the first six months of 2015, the CPI was down 0.65 percent year-on-year, but Tsai Yu-tai (???), deputy director of the DGBAS's census department, said Taiwan was not facing deflationary pressures because core inflation, which excludes vegetables, fruits and energy, was up 0.87 percent year-on-year during the January-June period. The DGBAS said the cost of transportation and communications services fell 5.41 percent in June from a year earlier, largely because of a 23.19 percent fall in fuel costs. It was the seventh consecutive monthly fall in fuel prices, contributing to a 0.87 percentage point drop in the overall CPI. Natural gas prices and electricity rates for June fell 24.02 percent and 4.47 percent year-on-year, sending living costs down 0.81 percent for the month, the DGBAS added. Food prices rose 1.92 percent year-on-year in June with prices of vegetables, frozen foods, and meat up 10.75 percent, 5.55 percent and 2.86 percent, respectively. The cost of dining out in June was also up 1.67 percent, the government agency said. The prices of eggs and fruit, however, fell 13.03 percent and 3.41 percent in June, respectively, limiting the overall rise in food prices during the month, it said. The DGBAS said the cost of a basket of 17 government-monitored household necessities, including rice, pork, bread, eggs, sugar, cooking oil, shampoo and toilet paper, rose 0.51 percent year-on-year in June, reversing a 0.21 percent decline seen in May, due to stronger demand for meat during the Dragon Boat Festival. The cost of the basket rose 1.72 percent in the first six months of the year compared with the same period a year earlier. In June, the wholesale price index (WPI) fell 9.30 percent from a year earlier, reflecting the fall in prices of oil, coal, chemicals and base metals, the DGBAS said. In the first six months of this year, Taiwan's WPI dropped 8.92 percent from a year earlier. (By Chen Cheng-wei and Frances Huang)


Updated : 2021-09-19 05:54 GMT+08:00