The consumer price index CPI in Taiwan went up 2.75 per cent from a year earlier in the year, which is in line with economists' predictions for the second month in a row, but it also fell below 3 per cent for the second month in a row.
The pace was boosted by a 2.66 per cent year-on-year reading for August, said the Directorate General of Budget, Accounting and Statistics in a statement on Thursday.
In a Reuters poll of 19 economists, the CPI was expected to increase by 2.7 per cent from a year earlier.
The Core CPI, a measure of price pressures, rose by an on-year 2.79 per cent last month, compared to 2.73 per cent in August. It excludes more volatile energy, vegetable and fruit prices.
Taiwan's central bank is keeping a wary eye on inflation as it considers monetary policy.
The bank raised its benchmark policy rate for the third time this year last month, but only by a mild by 12.5 basis points bps to 1.625 per cent last month.
The central bank said that CPI would increase 2.95 per cent in 2022, a move from 2.83 per cent predicted in June.
Inflation in Taiwan has never been as bad as in the United States or Europe.
The central bank, whose governor said last month that they will need to keep inflation forecasts in mind when it comes to the direction of monetary policy, holds its next quarterly rate-setting meeting in mid-December.