TAIPEI -- Taiwan's monetary policy authority has lowered the forecast for the island's economic growth this year to 3.75 percent.

Meanwhile, the authority lifted the growth rate of the consumer price index (CPI) to 2.83 percent.

According to the authority earlier this week, the adjustment came in light of the sluggish consumption and industrial recovery resulting from the COVID-19 epidemic.

The authority in March estimated that the island's economy would grow by 4.05 percent and CPI would rise by 2.37 percent year on year.

Statistics showed that Taiwan's CPI rose by 3.39 percent in May, the biggest gain in nearly a decade.