Inflation Up in July, Uncertainty About Direction of Prices in Coming Months
By Andy Hsueh/John Van Trieste
Inflation in Taiwan rose past the government's 2% "warning line" for third month in a row during July. Consumer prices were up by over 2.5% year on year and the impact of global instability due to war in the Middle East on fuel prices leaves uncertainty in the months ahead.
Taiwan Consumers Hit by Rising Prices
REPORTER:
At Taiwan’s markets, budget-conscious shoppers are feeling the pinch. New figures show consumer prices up more than 2.5% in July year on year. Customers agree: their money just isn’t going as far as it used to.
Ms. Chou:
Nowadays, a meal will definitely start from [US$3].
Anonymous Shopper:
It’s really obvious when you buy groceries.
[US$30] doesn’t cover it anymore.
Before, with [US$30] you could buy fish and meat and still probably have some money left over.
REPORTER:
But the biggest headache is for vendors: supplies are getting more expensive, leaving a dilemma about whether to raise prices in turn.
Market Vendor:
If we don’t absorb the costs you’ll have to raise them for the consumer.
[But if you do] your customers may not come and buy anymore.
REPORTER:
Prices for staples like rice, pork and above all eggs are all up sharply.
REPORTER:
But rents are going up, too.
Chen Ting-chung (TREND CENTER, TAIWAN REALTY):
Many landlords need to spend more on maintaining the quality of their properties.
Naturally, this is later reflected in the rent.
REPORTER:
July was the third month in a row that inflation passed the government’s 2% “warning level.” And while produce prices could come down soon—barring any serious typhoons—situations like war in the Middle East mean there are many unknowns about what prices will be like through August and beyond.
Andy Hsueh and John Van Trieste for TaiwanPlus.
