TAIPEI (TVBS News) — Taiwan's consumer price index (CPI) exceeded 3% from March to July 2022, and in December, it reached 2.71%. The growth rate for the entire year was 2.95%, a record-high number in 14 years, which has had a big impact on the Taiwanese public.
Ms. Chen, an office worker, has packed her own lunch in an attempt to save a bit of money. "Sometimes during the weekdays, when dining out, there is a noticeable difference. For example, a meal, which was around NT90, recently, the prices have risen to NT＄120 or NT＄130," said Chen.
If diners buy a lunch box and a drink in Taipei area, the average cost for a meal may be around NT＄200. Chen remarked that she has also seen a significant rise in her rent.
Since the Russian invasion of Ukrainian, and the pressures of global inflation has continued to pile on, Taiwan's consumer price index has exceeded 3% for five consecutive months starting in March. The price of eggs has risen by 30.45%, while the cost of pork has increased by 6.4%.
According to Chiu Da-sheng, a esearcher at the Taiwan Institute of Economics, "In terms of the percentage when looking at Taiwan's Consumer Price Index, the two largest categories are food and accommodation."
However, he added, "Since last year's growth was relatively high, I think that especially in terms of food and rents, there may not be much room for further increase this year."
Housing prices in Taiwan have remained high, on the other hand, and the increase in rents has also affected the rise in the consumer price index.
According to the data from the Directorate-General of Budget, Accounting and Statistics, residential maintenance costs have risen by 5.82%, which is also a record-high increase in 27 years.
"The factors that have caused inflation have not completely gone away. For example, the Russia-Ukraine War is still ongoing, so these uncertain factors are all there, so for the prices to come down this year," said Lin Chu-chia, a professor at the Department of Economics at National Chengchi University.
"In fact, it is not very easy, it may be a little lower than last year. Directorate-General of Budget, Accounting and Statistics estimates 1.9%," he added.
In an era when the cost of everything is rising, compared with our salary growth, Taiwan's nominal salary increased by 3.7% in 2022. After deducting the 2.95% inflation rate, the real salary growth will be less than 1%.
