FX.co ★ Taiwan Inflation Hits Lowest Level in Four and a Half Years

Taiwan's annual inflation rate decreased to 1.25% in September, marking its lowest point since March 2021. This decline follows a rate of 1.60% in August and sits well beneath the central bank's 2% target. The slowdown in inflation was primarily due to reduced price growth across several sectors: food prices increased at a reduced rate of 2.64% compared to 3.18%, housing costs rose by 1.61% compared to 1.81%, education and entertainment grew by 0.92% compared to 1.28%, and miscellaneous goods and services increased by 2.54% compared to 2.57%. Additionally, there were continued declines in clothing prices, which fell by 0.93% compared to a previous 0.85% decrease, and in transportation and communication, which experienced a decrease of 2.02% compared to a 1.34% decline. However, prices in the health sector saw a faster increase of 1.94%, up from 1.75%. On a seasonally adjusted monthly basis, consumer prices rose by 0.11% in September, slightly lower than the 0.12% increase recorded in August.