TAIPEI, July 6 (Reuters) - Taiwan's inflation rate hit a
near 14-year high in June, with the consumer price index (CPI)
expanding 3.59% from a year earlier, more than market
The pace quickened from the 3.39% year-on-year reading for
May, the Directorate General of Budget, Accounting and
Statistics said in a statement on Wednesday, and was slightly
worse than economists' predictions in a Reuters poll for a 3.5%
It was the highest monthly reading since August of 2008,
when CPI rose 4.68%, and will likely add to pressure to further
raise interest rates.
Core CPI, a better measure of underlying price pressures,
rose 2.77% on year from 2.60% in May. It excludes more volatile
energy, vegetable and fruit prices.
Taiwan's central bank raised its policy rate in June for the
second time this year, reflecting concerns about quickening
inflation, and also trimmed the trade-reliant island's growth
outlook for 2022.
Analysts had expected one or two more modest rate hikes in
the second half of the year.
Price pressures are still much more moderate than in the
United States and Europe, however, and Taiwan's export-reliant
economy has been supported by a global shortage of
semiconductors that has filled Taiwanese chip-makers' order
On Tuesday, South Korea reported that its inflation last
month hit a 24-year high, growing a slightly
faster-than-expected 6.0% in June over a year earlier - the
highest since November 1998.
The government says Taiwan's economic fundamentals remain
sound, even as the stock market has swooned, pointing to its
world-leading semiconductor industry.
Earlier on Wednesday, chip maker United Microelectronics
Corp, whose clients include Qualcomm Inc and
Germany's Infineon, reported June sales soared 43.2%
on-year, with first half sales leaping 38.2% year-on-year.
(Reporting by Liang-sa Loh and Ben Blanchard; Editing by Andrew
Heavens and Kim Coghill)