April CPI up 1.74%, hitting a 1-year high; Fuel costs see largest increase in 4 years

Key News on the US-Iran War Central Message (Central News Agency reporter Pan Tzu-yu, Taipei, 7th) After the outbreak of the Middle East conflict, international energy prices surged, and their impact on domestic prices gradually became apparent. The Directorate-General of Budget, Accounting and Statistics (DGBAS) announced today that the Consumer Price Index (CPI) year-on-year increase for April was 1.74%, not only a significant expansion from March''s 1.2% but also the largest increase in a year, excluding Lunar New Year factors. Among these, fuel costs soared by 13.6%, marking the largest increase in four years. The outbreak of war between the US and Iran at the end of February led to rising energy prices, with international oil prices remaining above US00 per barrel, raising market concerns about inflation. Observing the price data released by the DGBAS, due to the government''s price stabilization measures, which mitigated the impact of rising oil prices on CPI, the CPI in March only increased by 1.2% year-on-year, expanding to 1.74% in April. Cao Zhi-hong, a specialist commissioner at the DGBAS, stated that the Middle East conflict indeed pushed up prices, but the government, through special stabilization mechanisms and measures such as freezing public transportation fares, effectively blocked the direct impact of rising energy prices on CPI from the source. ''Domestic prices have risen, but they are much more stable compared to other countries.'' Cao Zhi-hong pointed out that compared to March, fuel costs in April turned from decline to increase, with a year-on-year surge of 13.6%, the largest increase in four years since the Russia-Ukraine war. In addition, persistent increases in dining out expenses and rents were also factors contributing to the expanded CPI increase in April. Cao Zhi-hong explained that after the outbreak of the Middle East conflict, energy prices were the first to be affected, and this was significantly reflected in import prices. In April, import prices denominated in New Taiwan Dollars rose by 9.22%, a new high in nearly three and a half years, and the Producer Price Index (PPI), which reflects manufacturers'' costs, also saw its increase expand to 8.54%, the highest level in three and a half years. However, Cao Zhi-hong emphasized that although the rise in international energy prices has been transmitted to import prices, the government has effectively blocked its direct impact on CPI through various stabilization measures. Furthermore, while Taiwan''s fuel costs rose by 13.6% in April, a new high in recent years, it is still lower than South Korea''s 22.7%. As for the core CPI, which excludes fruits, vegetables, and energy, it increased by 1.91% year-on-year in April. The CPI for important daily necessities increased by 1% year-on-year, the smallest increase in 10 months. Looking ahead to the price situation in May, Cao Zhi-hong believes that although rising air ticket prices might push up CPI, the increase should be higher than April''s 1.74%, but ''there is a very high probability it will still be below 2%.'' Cao Zhi-hong stated that in early May, market rumors suggested that the US and Iran were likely to reach an agreement, and international oil prices began to trend downwards. This is a positive signal, and developments can continue to be monitored. (Editor: Pan Yi-ching) 1150507 Choose to stand with facts, every sponsorship you make is a force to protect press freedom Download the Central News Agency ''First-hand News'' APP to grasp the latest news instantly The text, images, and audio-visual content of this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.