Taiwan inflation at highest level since 2008
TAIPEI — Taiwan said Wednesday inflation hit a two-and-a-half-year-high of 1.93 percent in June, on the back of higher fuel costs and a sharp rise in fruit prices after a health…
TAIPEI — Taiwan said Wednesday inflation hit a two-and-a-half-year-high of 1.93 percent in June, on the back of higher fuel costs and a sharp rise in fruit prices after a health scandal.The year-on-year hike in the consumer price index -- the highest since November 2008 -- will add pressure on the central bank to increase interest rates as it struggles to cap prices.Last month's prices were up 0.61 percent from May while for the fist six months of the year it jumped 1.45 percent year on year, the Directorate General of Budget, Accounting and Statistics said.The central bank has said it expects inflation to hit 2.83 percent in 2011.The rise was caused mostly by soaring fruit prices, which rose 21.3 percent due to a sharp hike in demand after a health scare that saw consumers shun pre-made juice and sports drinks amid concerns they contained harmful chemicals.Fuel prices also rose 10.77 percent, in line with a global trend that has seen energy costs surge.The June core price index, which excludes vegetables, fruit, fishery products and energy costs, rose 1.23 percent from a year ago, while the wholesale price index was up 3.94 percent from last year.Taiwan's central bank last week raised its key interest rate for the second time this year as it tries to curb inflation.The bank hiked the discount rate by 12.5 basis points to 1.875 percent.The central bank raised rates for the first time since March 2008 in June last year and has followed up with four more hikes since then. Copyright © 2011 AFP. All rights reserved. More »
last modification 2011-07-06 09:45:28
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