MNI BRIEF: Taiwan's Oct Core CPI Hits Highest Level since 2008

Taiwan's Consumer Price Index rose 0.26% m/m in October, the fastest pace in four months, even as the year-on-year rate eased slightly to 2.72% from 2.76%, according to data from the Directorate-General of Budget, Accounting and Statistics released on Tuesday.

Headline inflation continued to ease from a year-on-year peak of 3.59% in June. Egg prices drove the rise year-on-year rise in inflation, spiking 34% y/y and seafood was up 6.51% y/y. These gains were partly offset by communication equipment and fruit prices, which fell by 5.45% and 3.77% respectively. Electricity was down 18.13% m/m as summer rates had ended. For the first ten months, the CPI increased 3.04% y/y.

Core CPI, which excludes food and fuel costs, increased 2.96% y/y, the fastest pace since 2008.

The Producer Price Index rose 0.67% m/m and 8.86% y/y, with water and power indices advancing 29.17% y/y and 21.43% y/y respectively, offset slightly by a drop in the price of basic metals at 7.72% y/y.

Tuesday's data follows weak PMI activity published last week, as analysts said Taiwan is facing increasingly weak demand on both domestic and international fronts. (See MNI BRIEF: Taiwan Oct PMI Lowest Since 2009)