DGBAS: AI Drives Up Computer Prices, Education Equipment Sees Highest Increase in 44.5 Years

(Central News Agency reporter Pan Zih-yu, Taipei, July 7) The effects of technological inflation are gradually emerging. The Directorate-General of Budget, Accounting and Statistics (DGBAS) stated today that the explosive demand for artificial intelligence (AI) has led to significant price increases in memory and other components since the second half of last year. Although the direct impact on domestic prices is limited, it is reflected in the significant surge in prices of computers and peripheral equipment, driving the "education equipment and supplies" category to its largest increase since statistics began.

The DGBAS today announced that the Consumer Price Index (CPI) in June expanded to a year-on-year increase of 2.6%, exceeding the 2% inflation alert line for two consecutive months and marking the largest increase in 17 months. Cao Zhi-hong, a special commissioner at the DGBAS, explained that the expanded CPI increase in June is due to the continued impact of the Middle East conflict on international oil prices, unstable weather leading to vegetable price hikes, and seasonal factors related to the Dragon Boat Festival.

The import price index, denominated in New Taiwan Dollars, increased by 23.07% year-on-year in June, the largest increase in nearly 46 years. The public is concerned whether this will lead to imported inflation.

Cao Zhi-hong stated that there is currently no phenomenon of imported inflation. The expanded import price increase in June is mainly due to rising international oil prices and the prices of electronic component raw materials. The former has seen a significant decline in international oil prices in late June as the Middle East situation eases, and future pressure will be reduced. The latter is mostly used for producing export goods and has a limited impact on the domestic market.

However, Cao Zhi-hong pointed out that while electronic component raw materials are mostly used for exports, a small portion will be reflected in domestic computers and related equipment. Therefore, the "education equipment and supplies" category saw a 7.39% increase in June, the largest since statistics began, or 44.5 years, primarily due to the significant rise in prices of computers and peripheral equipment within this category.

Cao Zhi-hong further explained that the AI wave has driven up the prices of related components. A wave of memory price increases began in the second half of last year and has gradually been reflected in the terminal consumer market since this year. Products such as computers and USB drives have seen price increases. However, because computers and peripheral equipment only account for 1.6% of the CPI's weight, and consumers purchase them infrequently, the impact on overall prices and public perception is not significant. (Editor: Lin Shu-yuan) 1150707

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