On May 7, 2019, the Taiwan Directorate-General of Budget, Accounting, and Statistics released the Consumer Price Index (CPI) indicators for April, 2019. It noted a few significant changes in prices, but overall the CPI (inflation) increased .66% from this time last year.
The slight inflation continues a trend in higher prices that started at the beginning of the year. The historical data is compiled by Trading Economics based on Taiwan Government’s data. It’s model projects an inflation of 2.1% in 2020.
In the long-term, the Taiwan Inflation Rate is projected to trend around 2.10 percent in 2020, according to our econometric models.TRADINGECONOMICS.COM
Key Changes Month to Month
Compared to prices in March, April showed higher prices in vegetables and garments, while eggs and and fruits were lower.
Prices of garments rose 10.98% due to the new arrival of spring and summer clothes
Changes Year over Year
Prices of vegetables, eggs, as well as fuels and lubricants rose 21.13%, 14.66%, and 2.37%, respectively. Besides, prices of water, electricity and gas supply rose 2.26% owing to the increase of gas price. Nonetheless, prices of fruits and communication fees declined 11.09% and 5.49%.Directorate-General of Budget, Accounting, and Statistics
Changes Since 2016
The CPI is based on 2016, when CPI measurements are guaged, so 2016=100. An indication of 102 is equivalent to a 2% increase in inflation from the baseline CPI. The following numbers reflect inflation or deflation from 2016.
Since 2016, the price of vegetables, fruits, and communication fees have dropped significantly. However, most other products and consumables have increased. The prices of eggs, fish and seafood, dairy products, and fuel have increased significantly. If you’re a tobacco or betel nut user, there’s bad news. These prices increased the most at 38.5%. On the bright sight, the price of rent and utilities increased a moderate 2.1% since 2016.
Impact of the CPI
The CPI is an indicator of inflation or deflation. The CPI is closely tied to cost of living. It also provides countries with key financial indicators to adjust financial policies to keep inflation predictable and under control.
For the average consumer, inflation is bad. While pay and wages should correlate to the CPI, that is not always the case. Thus, consumers end up paying more for goods and services without a corresponding cost of living pay raise. There are, however, some sectors who benefit from higher CPI.