The nation's consumer price index (CPI) rose 3.08 percent year-on-year last month on rising food, clothing and fuel prices, the government's statistics bureau said yesterday.
The inflation benchmark accelerated to a two-year high last month, adding pressure for another interest-rate increase.
Last month's figure was up a seasonally adjusted 0.78 percent month-on-month, the Directorate General of Budget, Accounting and Statistics (DGBAS) said.
Growth in last month's CPI compares with August's revised 1.6 percent year-on-year increase and seasonally adjusted 0.31 percent month-on-month rise.
"The inflation figure is quite high, surely putting pressure on the central bank to raise interest rates further," said Tony Phoo (符銘財), an economist at Standard Chartered Bank in Taipei.
"We expect the central bank to raise rates by another 12.5 basis points in December," he said.
On Sept. 20, the central bank raised its benchmark rates for a 13th consecutive quarter to 3.25 percent.
Food prices, which account for a quarter of the consumer price index, climbed 7.72 percent. Transportation costs increased 0.71 percent and housing costs, including gas and rent, rose 1 percent. The price of clothes jumped 3.5 percent.
"Retailers raised food prices because they had to pay higher prices for raw materials and energy," Rita Hsueh (
"Pastries, eggs, milk, puddings, boxed lunches and almost every daily consumer good have become more expensive lately," she said.
The core price index, which excludes prices of fresh vegetables and fruits, fishery products and energy, was up 1.94 percent last month from a year earlier and up 0.3 percent from August.
The wholesale price index (WPI) last month rose 4.63 percent year-on-year, which was up a seasonally adjusted 0.48 percent month-on-month, the DGBAS said.
In the nine months to September, the CPI rose 0.9 percent, the core price index gained 1 percent and the WPI was up 6.08 percent from a year earlier.
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