The consumer price index, or CPI, could see a dip in February compared with the same month last year. That was the word from the government’s statistics agency on Monday.
The agency’s senior executive officer, Chiou Shwu-chwen, spoke about the effect of the COVID-19 outbreak on the CPI. She said the government began to control the supply and pricing of medical supplies immediately after the outbreak, and that helped stabilize prices.
Chiou says the CPI is likely to see a year-on-year decline in February, but there is currently no concern about the possibility of deflation.
Chiou referenced the SARS outbreak of 2003, saying that the event led to a drop in people’s willingness to travel or eat out, which affected the restaurant and service sector. She said that the effect became more apparent in the second half of that year, so the long-term effect of the current virus outbreak on the economy remains to be seen.