Meanwhile, the statistics bureau said yesterday that inflation had accelerated to a 13-year high last month on food and energy costs, increasing the likelihood of an interest-rate increase.
Consumer prices climbed 5.34 percent from a year earlier, the bureau said. That was more than the 3.26 percent median estimate in a Bloomberg News survey of 10 economists. Prices rose 3.08 percent in September.
"A string of typhoons this summer caused food prices to rise and that was exacerbated by high oil prices," said Vickie Hsieh (
The central bank will decide next month on whether to raise the benchmark from 3.25 percent after 13 straight quarterly increases. Higher oil, commodity and food costs are driving up prices across Asia, with China's inflation at close to a decade high.
The yield on Taiwan's benchmark 10 year bond closed 5.2 basis points higher at 2.755 percent.
Core consumer prices, which exclude food and energy, rose 2.27 percent after climbing 1.94 percent in September. Food accounts for a quarter of the nation's consumer-price index and fuel makes up almost 13 percent.
Vegetable prices contributed about half of the 5.34 percent increase in the overall rate, the statistics bureau said.
Increased prices for global commodities such as wheat, corn and soya beans also boosted food costs, said Wu Chao-ming (
Import prices increased 8.85 percent from a year earlier, while wholesale prices rose 5.69 percent.
The inflation rate for the first 10 months was 1.35 percent and is unlikely to exceed 2 percent for the full year, Wu said. In August, the government predicted consumer prices would rise 1.48 percent this year.
Policy makers will "stay vigilant and continue monetary tightening," said Cheng Cheng-mount(
On Friday, crude oil closed at US$95.93 a barrel in New York, the highest level since trading began in 1983. In China, where food prices have pushed up inflation, the September rate was 6.2 percent.
Additional reporting by DPA
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