Typhoon damage, oil price hike pump up consumer price index

This article was written by Graham Norris and published by the Taiwan Journal on November 4, 2005. It reports that the consumer price index, the most commonly used measure of inflation in Taiwan, was 3.12 percent higher in September 2005 than the same month in 2004. It was the first time since 1996 that inflation had been above 3 percent for two consecutive months in Taiwan.

Some argue that Taiwan is now experiencing some sort of inflation crisis. Others point out that it is the rise in oil prices and crop-devastating typhoons that are the main culprit behind the jump in inflation. This article reviews statistics and other economy-related figures released by the government's Directorate General of Budget, Accounting and Statistics in order to explain these arguments.