The General Accounting Office announced today that the Consumer Price Index (CPI) increased by 2.33% year-on-year in October, and the increase converged. Although the import price index has reached the largest increase in the past 50 years, officials from the General Accounting Office said that most products are mainly supplied for export, and their impact on domestic consumption is relatively limited, and there is no imported inflation problem; domestic prices are currently rising moderately, and the annual CPI growth rate in November is expected to be slightly higher than that in October.
According to statistics from the General Accounting Office, the annual CPI growth rate in October was 2.33%, which has exceeded the 2% inflation warning line for six consecutive months. The core CPI annual growth rate after excluding fruits, vegetables and energy was 2.23%.
Cai Xiuhui, a temporary inspector of the Price Statistics Section of the General Accounting Office, explained that the annual CPI growth rate in October was 0.41 percentage points lower than that in September, which was mainly affected by four factors, including vegetable prices, which had an annual growth rate of 4.94% in September and then fell by 3.89% in October; the annual growth rate of electricity prices shrank; the growth rate of personal supplies converged; and the Mid-Autumn Festival fell in a different month, which caused a decrease in personal care service fees.
Cai Xiuhui said that although the CPI has increased by more than 2% for six consecutive months, overall price items still rise and fall, and domestic prices are still rising moderately.
As for the annual increase of 3.01% in eating out expenses in October, it has been an increase of more than 3% for five consecutive months. Cai Xiuhui pointed out that in the first ten months of this year, the average annual increase in eating out expenses was 3%. Compared with the 111 years of the Republic of China, which was affected by the Russo-Ukrainian war and rising agricultural and food prices, the annual increase in eating out expenses reached 5.77%. It has now slowed down compared to that time. However, for the public, the frequency of eating out is high, and the price increase is more obvious. The General Accounting Office will closely observe changes in data.
It is worth noting that the import price index in October increased by 33.32% annually in New Taiwan dollars, the largest increase since January 1966, and by 26.72% in U.S. dollars, the largest increase since March 1969.
Cai Xiuhui said that the increase in the import price index in October was mainly due to the 58.35% annual increase in the price of mineral products in US dollars, the 19.1% annual increase in basic metals and their products, and the 31.7% annual increase in machinery, motors, television imaging and other equipment and their parts. She explained that the rise in mineral product prices is mainly affected by the rise in international crude oil prices; as for machines, motors and related parts, it reflects the demand for AI, driving up the prices of electronic components such as memories.
Cai Xiuhui pointed out that the increase in the price of some electronic components may be reflected in the prices of domestic consumer electronics such as computers and mobile phones. However, most of these components are used for export and have a relatively limited impact on domestic consumers. In terms of crude oil prices, the government has also taken price stabilization measures, and there is currently no imported inflation problem.
Looking forward to November, Cai Xiuhui said that because October last year coincided with the Mid-Autumn Festival, which raised the comparison base period, the CPI increase in October this year was relatively convergent. As the festival factors disappear, the annual CPI growth rate in November is expected to still be higher than 2%, and the increase may be larger than that in October.
