Taiwan's CPI breaks inflation warning line for six consecutive months

China News Service, Taipei, November 5. Data released on the 5th by the "General Accounting Office" of the Taiwan authorities' administrative agency showed that Taiwan's consumer price index (CPI) increased by 2.33% year-on-year in October, exceeding the 2% inflation warning line for six consecutive months.

Based on press releases from the Accounting General Office and reports from Taiwanese media such as Central News Agency, Taiwan’s CPI in October increased by 0.06% compared with September. The average CPI from January to October this year increased by 1.98% compared with the same period last year.

Taiwan's United News Network reported on the 5th that the strong demand for AI has brought about price increases for electronic components such as memories, which has continued to drive up the import price index. In October, import prices in New Taiwan Dollars rose by 33.32%, hitting a new high.

The "General Accounting Office" explained that among the categories with large price changes, transportation and communication prices increased by 4.36% year-on-year in October. The main reason was that fuel costs increased by 15.17% with the increase in international oil prices. Air ticket prices increased by 12.53% due to increases in international route fuel surcharges and airport service charges.

The price of education and entertainment items increased by 2.94% year-on-year, mainly due to the shortage of electronic components such as memories, which drove the price of education equipment and appliances such as computers, other computer equipment and software to increase by 9.51%. In addition, housing prices increased by 2.07%, and food prices increased by 2.05%.

Taiwan's Producer Price Index (PPI) in October, released on the same day, rose 19.66% year-on-year, mainly due to rising prices of petroleum and coal products, computers, electronic products and optical products, chemical materials and their products, and pharmaceuticals.