Taiwan’s statistics office released figures Wednesday showing the Consumer Price Index (CPI) for March fell for the third month in a row.
Overall consumer prices in Taiwan fell 0.22% in March, for a total decline of 0.61% so far this year. A large decrease in oil prices is partially responsible for the falling CPI.
But the latest figures show the cost of common foods such as eggs, meat, vegetables, and seafood went up by more than 3% in March. The cost of eating out rose by 2.90%, the smallest increase over the past year.
Increased supply and decreased demand after the Lunar New Year holiday saw the price of pork stabilize in March after hitting a 78-month high in February.
The statistics office said there is no worry of deflation, as the “core CPI”, which excludes the prices of more variable commodities like energy, fruits, and vegetables, remained at 0.96% in March.
Deputy Director of the statistics office, Tsai Yu-tai, said Wednesday that abundant supply throughout the market is one reason for the falling CPI.
Tsai said the drop in the CPI during the first quarter of the year has been larger than expected. If there is little change in the price of oil, fruits and vegetables, Tsai said it is very likely that the CPI will continue to drop in the second quarter as well.