Taiwan experienced a slowdown in inflation for October, with the consumer price index (CPI) showing a modest 0.25% increase from the previous month. This rise was primarily influenced by elevated garment and vegetable prices; however, these were countered by reductions in electricity and egg costs, based on government data released on Wednesday.
The core CPI, which excludes food and energy prices, saw a more notable increase of 0.47%. On an annual basis, the CPI increased by 1.69%, spurred by higher costs for fruits, vegetables, and dining out, alongside rises in medical services and residential rents. Conversely, the decline in egg prices, coupled with lower fuel costs, helped to temper the overall inflation rate.
The core CPI recorded an annual increase of 1.64%. In terms of cumulative data, for the first ten months of 2024, the CPI escalated by 2.19%, with commodity prices experiencing a 1.88% rise and services increasing by 2.49%. Financial experts from ING Research commented that the easing of inflation could potentially pave the way for an interest rate cut.
However, they emphasized that there is no rush for immediate action, as the latest figures indicate robust economic growth..