| dc.description.abstract | Taiwan is a small open economy and more than 98% of the energy supply to import as poor natural resource, especially those living in the oil needed everywhere, 40% over the proportion of total energy consumption. The oil is raw materials as transportation and essential goods. People will inevitably concern about inflation when if the oil prices have a dramatic ups and downs.
This paper discusses the relationship between the dramatic ups and downs of oil prices and CPI inflation in Taiwan whether the main reason of long-term equilibrium. The few study had used seven categories the consumer price index to discuss the change of oil price. Researcher uses 40 consumer price index to analysis with ADF unit root test and Engle-Granger cointegration test for study period was January 2009 to June 2014 as month data.
The variables are in a stationary by ADF unit root test at least through the first difference, discount rate is integrated of second-order. EG cointegration test shows that ＂clothing, education and entertainment category, miscellaneous category＂ and ＂cereals and their products, meat products, edible oil, wine, non-alcoholic drinks and materials, other food, clothing, footwear, home management expenses, education expenses, entertainment expenses, beauty and hygiene products＂ and oil price are cointegrated.
Results indicates consumer price index may not only have a certain relationship with the oil prices, but in the long run that is convergence relations among oil price and consumer price index means that the economic may cause inflation by crude oil price fluctuations. | en_US |