CPI sees lowest annual growth for over 3 years in October

Taipei, Nov. 6 (CNA) Taiwan's consumer price index (CPI) grew 1.69 percent from a year earlier in October, the lowest year-on-year growth since April 2021, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Wednesday.

While Typhoon Krathon, which hit Taiwan at the beginning of October, caused agricultural losses and pushed up the prices of fruit and vegetables, there were also many typhoons last year, which drove up the comparison base, DGBAS specialist Tsao Chih-hung (曹志弘) told the media.

Moreover, the long weekend for National Day in 2023 pushed up prices for entertainment and services, further elevating the base, Tsao said.

Meanwhile, the average price of 17 daily necessities monitored by the Executive Yuan's price stability group declined 0.62 percent year-on-year. Of these items, the cost of chicken eggs fell a drastic 26.81 percent, the steepest decline in 24 years.

This reflected how the increasing supply of eggs exceeded demand, said Tsao, adding there was also a higher comparison base given egg prices rose last year.

Excluding fruit and vegetables, year-on-year CPI growth was 1.51 percent. The core CPI, which also excludes energy, logged a 1.64 percent year-on-year rise, the DGBAS said.

However, although the core CPI has been under the 2 percent alert rate for the seventh consecutive month, people were likely to still feel a sting from inflation because rent grew by 2.53 percent and dining out 2.96 percent.

Tsao pointed out that the arrival of Typhoon Kong-rey may reverse the trend of decreasing year-on-year CPI growth in November.

On the other hand, the weather in autumn and winter is advantageous for growing vegetables. He, therefore, predicted overall CPI growth would not exceed 2 percent.

In response to questions by the media about whether the U.S. election results could drive inflation, Tsao said that impacts from policies may not be immediately apparent and that international raw material prices will still be more influenced by supply and demand.

The October CPI rose 0.25 percent compared to September, or 0.11 percent when seasonally adjusted, DGBAS data showed.

The rise was because of the arrival of new seasonal clothing, plus the impact of Typhoon Krathon. Meanwhile, electricity prices fell as summer rates ended, offsetting part of the increase, according to the DGBAS.