TAIPEI (Taiwan News) — Consumer prices rose 1.25% in September from a year earlier, the slowest pace in 4.5 years and the fifth straight month below 2%.
Core inflation, which excludes fruit, vegetables, and energy, increased 1.46% year-on-year. The Directorate-General of Budget, Accounting and Statistics (DGBAS) said overall price pressures remained contained, with the 1.25% print marking a multi-year low and core at a seven-month trough, per Liberty Times.
On a monthly basis, the consumer price index (CPI) slipped 0.23% from August. Officials pointed to steadier weather that helped vegetable output recover, lower transportation costs after commodity-tax cuts on new cars and motorcycles alongside heavier promotions, and a higher base because last year’s Mid-Autumn Festival fell in September.
Within the basket, food prices edged down 0.11% year-on-year as vegetables fell 11.93%. That drop was partly offset by a 5% rise in fruit tied to seasonal demand for sacrificial offerings.
Prices for “important daily necessities” rose 2.47% from a year earlier, the fastest in more than 18 months. Pork climbed 8.74% and eggs 5.94%, reflecting festive demand and earlier substitution effects when vegetable prices spiked.
Attention now turns to October’s household electricity adjustment. DGBAS said the Oct. 1 rate increase mainly affects homes directly and small firms indirectly, adding roughly NT$70 per month to typical small-business bills. It estimates the CPI impact at 0.01 percentage point this year and 0.04 percentage point next year, per CNA.
Officials said stable weather could offset that upward nudge, leaving October inflation close to September’s pace. They also cited softer imported input costs as a cushion, noting lower global crude, mixed moves in other raw materials, and continued declines in import and domestic-selling price gauges.
Services costs such as dining out and rent remained more than 2% higher than a year earlier but showed no fresh acceleration. DGBAS said core inflation has held below 2% since last April, consistent with a broadly steady price environment.
