Taiwan
Taiwan's inflation accelerated for a second month in March, as rising grain costs boosted food prices.
Consumer prices climbed 3.96 percent from a year earlier, the state statistics bureau said today in Taipei. That was less than the 4.3 percent median estimate of 11 economists surveyed by Bloomberg. Prices rose a revised 3.87 percent in February.
Accelerating inflation fueled by higher food costs, which make up about a quarter of the index, may prompt the central bank to raise interest rates at its next policy meeting in June. Policy makers increased borrowing costs for a 15th straight quarter on March 27, citing inflation risks.
“Rising food prices are gradually showing their impact,'' Fang Wenyen, a Taipei-based economist at KGI Securities Co., said before the announcement. “The central bank hasn't given any indication that it will pause from raising rates.''
Food prices rose 9.33 percent from a year earlier, while transportation costs increased 3.86 percent. Housing, which includes rent and utility expenses, climbed 1.12 percent instant payday loan.
Wheat futures reached a record $13.495 a bushel on Feb. 27. The U.S. has forecast global stockpiles will decline to the lowest in 30 years after excessive rain hurt U.S. crops in 2007 and drought curbed yields in Canada and Australia. Taiwan imports almost all its wheat for bread, cakes, and noodles.
Core consumer prices, which exclude vegetables, fruit, fish and energy, rose 3.07 percent in March after gaining a revised 2.62 percent in February.
Import prices increased 11.84 percent from a year earlier, while wholesale prices rose 7.15 percent.
Policy makers in Taipei increased the discount rate on 10- day loans to banks by 12.5 basis points on March 27 to 3.5 percent, the highest in almost seven years. Inflation may top a government target of 2 percent this year, the central bank said.