Bloomberg News

Taiwan’s Consumer Prices Rise at Slower-Than-Estimated Pace

October 05, 2011

(Updates with economist’s comment in fourth paragraph.)

Oct. 5 (Bloomberg) -- Taiwan’s consumer prices rose at a slower-than-estimated pace in September as the climb in housing and clothing costs moderated.

The consumer-price index increased 1.35 percent from a year earlier, compared with a 1.34 percent advance in August, the statistics bureau said in Taipei today. The median of 16 estimates in a Bloomberg News survey was for a 1.4 percent gain.

Taiwan’s central bank left its key interest rate unchanged at 1.875 percent last week, snapping a run of five straight quarterly increases as Asia’s policy makers seek to shield growth from a weakening world economy. Governor Perng Fai-nan expects easing global prices this quarter to slow the island’s imported inflation.

“If global uncertainties and market volatility persist, the central bank will continue to adopt a wait-and-see approach with a dovish bias in the fourth quarter,” Raymond Yeung, an economist at Australia & New Zealand Banking Group Ltd. in Hong Kong, said before the release.

Food prices rose 1.88 percent in September from a year earlier, today’s report showed. Prices in the transportation and communications category advanced 1.72 percent and clothing prices climbed 2.62 percent.

Core consumer prices, a category excluding vegetables, fruit, fish and energy, increased 1.17 percent after rising 1.26 percent in August.

Wholesale prices, which track the cost of goods sold to retailers and producers, advanced 5.14 percent from a year earlier, compared with a revised 4.02 percent increase in August.

--With assistance from Ailing Tan in Singapore. Editors: Sunil Jagtiani, Janet Ong

To contact the reporter on this story: Chinmei Sung in Taipei at csung4@bloomberg.net.

To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net


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