TAIPEI (Taiwan News) — Taiwan’s state-owned alcohol and tobacco company said Wednesday (Aug. 8) that it has increased the price of Taiwan Beer and cigarette products in retail stores.

The price hike was first announced by the Taiwan Tobacco and Liquor Corporation (TTL) in June, and initially only applied to wholesalers. TTL said that from Aug. 1, the retail price of Gold Medal, Classic, and 18-Days beers increased by NT$5 (US$0.03), and its tobacco products increased by NT$5-10, per CNA.

The company said that wholesale beer prices increased by up to 7% in June, and the August increases are likely to be felt at supermarkets and mass retailers first. TTL said that as a state-owned enterprise it is required to pay about NT$6 billion to the government every year. With the rising cost of raw materials, the price increase is required to maintain economic viability.

TTL emphasized it would not earn more profit because of the price adjustment. Inflationary pressures have eased since prices surged in June last year, though economists and anecdotal evidence both suggest people in Taiwan are still feeling the pressure of rising living costs.