Taiwan's Inflation Eased to 0.64% in October on Lower Energy Prices
TAIPEI--Taiwan's inflation eased in October, in line with lower global energy and food prices, and economists say consumer-price growth will likely continue to slow in the long term--mostly on the back of a pullback in oil prices.</br></br>The consumer-price index rose 0.64% from a year earlier in October, the government's Directorate General of Budget, Accounting and Statistics said Tuesday. The reading was lower than September's rise of 0.84% and the median 1.15% increase forecast by 10 economists surveyed by The Wall Street Journal.</br></br>The inflation rate has fallen from an average of 1.8% in the first quarter and 1.93% in 2012. The government and economists attribute the decline mainly to lower crude-oil prices.</br></br>Global oil prices have fallen steadily over the past couple months, with the U.S. and European benchmarks having slipped 16% and 9%, respectively, since Aug. 28.</br></br>"Oil prices may fall further and will continue to push down the island's consumer prices," Standard Chartered economist Tony Phoo said. Taiwan imports almost all its energy needs, the price of which is reflected in transportation costs, which account for 12% of the CPI basket.