Taiwan's inflation rates saw a slowdown in October, with the consumer price index (CPI) indicating a 0.25% increase from September. This rise was tempered by reduced costs in electricity and eggs, which counterbalanced the effects of higher prices for garments and vegetables. The core CPI, which excludes food and energy, reported an increase of 0.47%.
Year-on-year, the CPI displayed a 1.69% rise, largely attributed to escalating prices for fruits, vegetables, and dining out, along with rises in medical care and residential rents. However, the decreasing prices of eggs and fuel softened the overall inflation picture, leading the core CPI to climb 1.64%.
In terms of annual performance, the cumulative CPI for the first ten months of 2024 increased by 2.19%, with commodity prices rising by 1.88% and service prices seeing a climb of 2.49%. ING Research commented that this cooling trend in inflation may provide room for interest rate cuts, although it emphasized that there is no immediate pressure to implement such measures, as recent economic data continues to reflect strong growth..