Taiwan: Inflation moderates in October
November 7, 2022
Inflation came in at 2.7% in October, which was down from September’s 2.8%. Looking at the details of the release, the change in prices for food was largely stable in October while price pressures for housing were broadly in line with the previous month's reading. Meanwhile, transportation price growth softened. Inflation has now eased substantially from its mid-year level, and is currently far below comparable readings in other developed markets.
The trend was unchanged, with annual average inflation coming in at September's 3.0% in October.
Lastly, consumer prices increased 0.26% in October over the previous month, picking up from September's 0.25% rise.
Mild price pressures will reduce the rate hikes required of the Central Bank: Our analysts see only minor tightening at the Bank’s December meeting, with the policy rate forecast to rise to 1.75% from 1.625% currently.