Investing.com -- Taiwan's consumer price inflation increased to 1.74% year-over-year in April, up from 1.2% in March, according to Bank of America.

The rise was driven primarily by energy prices, which climbed around 10.8% year-over-year, though the government's fuel price smoothing mechanism moderated the pass-through effect. Goods inflation rose to 1.1% from 0.2% in March, while services inflation increased to 2.3% from 2.2%.

Core CPI inflation, which excludes vegetables, fruits and energy, edged down slightly to 1.91% year-over-year from 2.0% in March. On a monthly basis, CPI rose 0.47% in April on a seasonally adjusted basis.

Food prices rose only 0.6% year-over-year, as fruit prices fell 18.2% year-over-year, offsetting increases in meat prices at 3.07% and dining-out prices at 2.88%.

Services inflation remained firm, with housing costs rising around 2.1% year-over-year and rents up 1.9%. Education, recreation and medical care also recorded steady increases. Dining-out inflation stood at 2.9% year-over-year.

Bank of America expects inflation to rise toward around 2% in May, assuming elevated global oil prices and relatively stable domestic fuel pricing. Import prices in Taiwan dollar terms were up 9.2% year-over-year in April.