TAIPEI (TVBS News) — Central Bank Governor Yang Chin-long remarked on Wednesday (March 27) Taiwan's inflation rate remains mild compared to other countries, even though electricity price hikes may drive up commodity prices.
Addressing Taiwan's inflation rate exceeding 2% for three consecutive years, Yang noted at Legislative Yuan, "Many countries are above 2%, even 3%. This is the case for most developed countries, so Taiwan's inflation rate is quite mild."
Regarding the possibility of another interest rate hike in June, Yang mentioned that the chances of either an increase or a decrease are slim unless the annual inflation rate surpasses 3%.
Meanwhile, on Tuesday, the Legislative Yuan's Procedure Committee approved a proposal by the Kuomintang (KMT) for an "Amendment to the Electricity Act." This amendment requires the Ministry of Economic Affairs to obtain legislative approval before implementing electricity price adjustments.
KMT Convener Fu Kun-chi highlighted that past electricity price review committees acted unilaterally, emphasizing the demand for electricity price adjustments to undergo public review.
Fu stated, "In the past, the Electricity Price Review Committee acted unilaterally. We want to include the need for the public's parliament to supervise electricity prices. After all, when electricity prices rise, everything goes up. An 11% increase in electricity prices could lead to a 30% increase in commodity prices."
