Taiwan's inflation rate virtually flat in 2020
By ECCT staff writers
Taiwan’s Consumer Price Index (CPI) increased by 0.06% in December 2020, compared with the same month in 2019. According to an official report on the measure of inflation by the Directorate General of Budget, Accounting & Statistics (DGBAS), the rise was mainly attributed to the index for transportation fees, which rose 9.6% due to the increase in airfares. The index for vegetables also rose 8.63% as abundant harvest last year led to a relatively lower comparison base, according to the report. The index for personal effects rose 3.15% as well, mainly owing to the increase in the prices of precious metals ornaments and jewellery. Moreover, indices for eggs and garments rose 1.91% and 1.74%, respectively. However, the index for fuels and lubricants fell 15.92% on the back of a drop in international oil prices compared to the same month in 2019. Meanwhile, indices for fruits, as well as water, electricity and gas fell 9.41% and 2.54%, respectively; the index for entertainment expenses also fell 1.64% as hotel charges dropped, offsetting part of the increase.
In 2020 overall, the CPI decreased 0.23%. The index for commodities fell 0.78%, but the index for service roses 0.21%. The core CPI increased by 0.36%.