Taipei:Taiwan's consumer price index (CPI) increased by 2.33 percent year-on-year in October, maintaining its position above the 2 percent alert threshold for the sixth consecutive month, as reported by the Directorate General of Budget, Accounting and Statistics (DGBAS).

According to Focus Taiwan, the core CPI, which excludes fruit, vegetables, and energy, saw a 2.23 percent rise compared to the previous year. DGBAS official Tsai Hsiu-hui noted that the annual CPI growth rate had slowed from 2.74 percent in September, largely due to reduced vegetable prices, smaller hikes in electricity and personal goods prices, and a drop in personal care service fees, influenced by the timing of the Mid-Autumn Festival holiday.

Dining-out costs continued their upward trajectory, increasing by 3.01 percent year-on-year. This marks the fifth consecutive month of growth exceeding 3 percent. Tsai indicated that while this year's increase is more moderate compared to the 5.77 percent surge in 2022, dining out remains a significant household expense, and the DGBAS will continue to monitor price movements.

Taiwan's import price index, calculated in New Taiwan dollar terms, experienced a significant rise of 33.32 percent year-on-year in October, the highest increase since the index's inception in January 1977. In U.S. dollar terms, the index rose by 26.72 percent, the steepest increase since March 1980. Tsai attributed this largely to higher prices for minerals, machinery, electrical equipment, and basic metals.

Rising global crude oil prices have driven up mineral prices, and the demand related to artificial intelligence has influenced machinery and electrical equipment prices. Although these trends could eventually affect the prices of consumer electronics, most impacted products are intended for export, minimizing domestic consumer effects. The government has implemented measures to stabilize prices amid global crude oil price fluctuations.

Looking forward, Tsai mentioned that the high comparison base from October 2025, when the Mid-Autumn Festival holiday occurred, helped moderate this October's annual CPI increase. With no long weekends anticipated in November, CPI growth is expected to remain above 2 percent, potentially surpassing October's 2.33 percent increase.