Sunday, February 16, 2025

Taiwan worries about inflation rate

TAIPEI (Taiwan News) — Taiwan’s Directorate General of Budget, Accounting and Statistics (DGBAS) predicted an economic growth rate of 3.43% in 2024 on Thursday (Feb. 29), but cautioned that inflation could rise.

The DGBAS also revised the consumer price index (CPI) to 1.85%, reported CNA. In addition it said that raw material prices remaining at low levels have helped to moderate price increases in goods.

However, Minister of the Directorate General of Budget, Accounting, and Statistics Chu Tzer-ming (朱澤民) said that while the inflation rate is lower than last year, the pressure from inflation is still there, reported Economy Daily News.

Chu said the government’s plan for adjusting electricity prices has not been finalized, and the forecast by the DGBAS does not include factors related to electricity price adjustments. If electricity prices do rise, the inflation rate could exceed 1.85%, he added.

Also, the DGBAS included the impact of carbon reduction policies on the domestic economy and prices among the uncertain factors in its economic forecast. Chu said that although the Ministry of Environment (MOE) has not yet announced the details of carbon taxes, once they are introduced, they are bound to increase business costs, potentially affecting prices.

Chu added the MOE is expected to introduce carbon taxes in 2025, but cautioned against overly negative reactions. “While carbon reduction policies do increase business costs, they also stimulate business investment, both positively and negatively,” the minister said.

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