Taiwan Sept CPI up 3.08 pct yr-on-yr vs revised 1.60 pct rise in Aug

Oct 5, 2007 - The consumer price index (CPI) in September was up 3.08 pct year-on-year and up a seasonally adjusted 0.78 pct month-on-month at 107.38, the Directorate General of Budget, Accounting and Statistics (DGBAS) said.

The calculation was made using the 2001 benchmark of 100, the DGBAS said.

Growth in September CPI compares with August's revised 1.60 pct year-on-year increase and seasonally adjusted 0.31 pct month-on-month rise.

The September core price index, which excludes prices of fresh vegetables and fruits, fishery products and energy, was up 1.94 pct from a year earlier and up 0.30 pct from August.

Changes in the September core price index compare with data in August showing a revised year-on-year increase of 1.60 pct and 0.15 pct month-on-month rise.

The wholesale price index (WPI) in September rose 4.63 pct year-on-year to 126.67 (also based on the 2001 benchmark of 100), which was up a seasonally adjusted 0.48 pct month-on-month, the DGBAS said.

Comparative data for August show the WPI rising by a revised 3.63 pct year-on-year and increasing by a seasonally adjusted 0.01 pct month-on-month.

Wu Chung-ming, a section chief at the DGBAS, said the CPI in September this year marks the largest year-on-year increase in two years, after a rise of 3.16 pct in September 2005, as prices of vegetables were inflated as a result of typhoons and torrential rains.

"There were three typhoons in August, causing higher prices of vegetables in September, considering the time required to grow them," Wu said.

The food sector contributed 2.08 percentage points to the growth figure of 3.08 pct in September CPI.

"Vegetable prices alone in September rose 32.63 pct from a year ago," Wu said.

In addition, the upswing in raw materials international prices were reflected in some of the food prices, helping push up the CPI as well, he said.

The increase of 1.94 pct in September core prices marks the highest since the 2.12 pct rise posted in February 2002.

"The core price index was boosted by price hikes in garment, Chinese medicines, tobacco, meat and dairy prices, which mirror the uptrend in global raw materials prices," Wu said.

The DGBAS forecast in August that CPI in full year 2007 would grow 1.48 pct. Against such forecast, CPI inflation in the first nine months of the year registered an average 0.90 pct rise.

"While the fourth-quarter CPI will be dictated by weather (influences) and the impact of international raw material prices, possible growth in CPI for the whole year is unlikely to surpass 2 pct," Wu added.

During the January-September period, the core price index inched up 1.00 pct, while the WPI grew 6.08 pct.

The DGBAS also said that in September, the import price index rose 7.69 pct year-on-year and was up 1.65 pct month-on-month in US dollar terms.

The September export price index rose 1.14 pct from the same month last year and increased 0.22 pct from August, also in US dollar terms, it said.

For the first nine months of the year, the import price index rose 6.12 pct year-on-year and the export price index grew 2.28 pct, it added.