TAIPEI (Taiwan News) — An increase in electricity prices may cause the annual inflation rate to exceed 2%, said Central Bank of Taiwan Governor Yang Chin-long (楊金龍).Yang went to the Financial Committee of the Legislative Yuan on Thursday (March 14) to report on inflation and monetary policy, per CNA. He said that electricity price increases will affect commodity prices, directly and indirectly.One indirect effect is the increase in corporate costs, which may be passed on as higher costs for consumers, he said.Yang also said he believes the impact of this round of electricity price increases on prices will not be significant, and there will not be a situation where prices keep rising continuously. However, because the issue has been raised earlier this time and has been a hot topic among the public, he is more concerned about people’s fears about inflation.“Taiwan’s long-term average inflation rate used to be around 1%,” Yang said. “If the long-term average inflation rate rises to 1.5% or 2%, it is a structural change. If this happens, interest rates are unlikely to remain as low as in the past,” he added.However, Yang said that while the U.S., the U.K., and E.U. countries are discussing interest rate cuts, Taiwan is different. “Not only is the speed of raising interest rates different, but Taiwan’s rate hikes are slower and sustained,” he said.The Central Bank of Taiwan is set to discuss the impact of inflation on March 21.By Michael Nakhiengchanh, Taiwan News, Staff Writer2024/03/14 15:52 (ICE TAIPEI)

Fonte notizia: Organi di Stampa - Taiwan News