Taiwan's consumer prices rose 2.33% in October from a year earlier, slowing from 2.74% in September, the Directorate General of Budget, Accounting and Statistics (DGBAS) said on Thursday. Inflation has now stayed above the government's 2% alert threshold for six consecutive months, and price pressure further up the supply chain hit levels not seen in decades.

The import price index, measured in New Taiwan dollars, jumped 33.32% from a year earlier, its biggest increase since the series began in January 1977, according to the statistics agency. In U.S. dollar terms, import prices climbed 26.72%, the steepest rise since March 1980. For investors in Asia, the split matters: Taiwan's households are seeing moderate inflation, while the island's manufacturers, which sit at the center of the AI hardware supply chain, are absorbing a sharp jump in input costs.

Taiwan CPI: holiday timing pulls the headline down

Prices rose 0.06% from September. DGBAS said new autumn and winter clothing lifted the garment index 11.14% during the month, and hotel and package holiday costs rose on a larger number of holidays. Electricity prices fell 18.17% from September and vegetables dropped 9.19%, which offset most of those gains.

Core CPI, which strips out fruit, vegetables and energy, rose 2.23% from a year earlier and 0.54% from the prior month.

The annual comparison flattered the headline. The Mid-Autumn Festival fell in October 2025, which raised some service charges in that month. This year it did not, so some fees, including personal care services, came in below last year's level. Hotel charges also fell from a year earlier because of discounts aimed at weekday domestic travel, DGBAS said.

Other items kept climbing. Fuels and lubricants rose 15.17% on developments in the Middle East and a low base from last year. Eggs rose 9.38%, fish and seafood 4.00% and residential rents 1.70%. Restaurant meals, which DGBAS tracks as food away from home, rose 3.01%. Focus Taiwan reported that was the fifth month in a row with dining-out inflation above 3%.

DGBAS official Tsai Hsiu-hui said dining out is a routine household expense, so increases there are especially visible to consumers, according to the Central News Agency report. She noted the pace was still well below the 5.77% annual rise in 2022.

For the first 10 months of 2026, consumer prices rose 1.98% and core prices 2.17%.

Producer and import prices surge on oil, metals and AI demand

The bigger move came at the factory gate. Taiwan's producer price index rose 19.66% in October from a year earlier and 1.48% from September. Gas supply prices jumped 65.06%, petroleum and coal products 56.34%, and computers, electronic and optical products 37.82%, the agency said. Chemical materials and pharmaceuticals rose 28.29% and electronic parts and components 23.96%. Farm product prices fell 4.71%.

Within imports, mineral prices rose 58.35%, machinery and electrical equipment 31.7% and basic metals 19.1%, Tsai said, according to CNA. She attributed the mineral increase to higher global crude oil prices and the machinery gains to demand linked to artificial intelligence.

Export prices also rose sharply, by 26.38% in U.S. dollar terms. Tsai said that although more expensive components could eventually lift the price of computers and phones, most of the affected goods are made for export, which limits the effect on domestic shoppers. The government has also taken steps to steady prices as crude oil swings, she said.

The data follow third-quarter figures showing Taiwan's economy grew 14.36%, its fastest third quarter in 48 years, on the back of AI exports. Strong demand for servers and chips has been a source of growth, and the price data show it is also a source of cost pressure through the supply chain.

Markets and what comes next

The release landed on a rough day for Taiwan's equity market. The Taiex fell 3.2% on Thursday to 41,574.72, its lowest close since July 31, as concerns about delays in U.S. AI data center construction hit technology shares, CNA reported. MediaTek dropped 6.86% and Delta Electronics 7.38%, while several printed circuit board makers fell by the 10% daily limit. Foreign institutional investors sold a net NT$102.46 billion of shares.

The U.S. dollar gained NT$0.055 against the Taiwan dollar to close at NT$32.876 in Taipei on Thursday. A weaker local currency adds to the cost of imports priced in dollars.

The October consumer figure is unlikely to be the peak. Tsai said the high base from last October's holiday had held down this month's annual rate, and with no long weekends expected to distort November, consumer inflation will probably stay above 2% and could rise above October's 2.33%. DGBAS will publish November price data on Dec. 8.