Taiwan Inflation Rises to 1.31% in December

The annual inflation rate in Taiwan slowed to 0.69% in January 2026, sharply down from 1.31% in December, marking the lowest level since January 2021. This was also the ninth consecutive month below the central bank’s 2% target. Downward pressures came from continued deflation in transportation and communication (-1.95% vs -1.34% in December) and declines in education and entertainment costs (-0.97% vs 1.69%). Inflation also moderated for food (1.16% vs 1.26%), housing (1.82% vs 1.86%), and miscellaneous goods (1.99% vs 3.26%). On the other hand, price growth accelerated for clothing (1.58% vs 0.90%) and health (1.62% vs 1.53%). On a seasonally adjusted monthly basis, consumer prices rose 0.10%, following a 0.14% gain in the previous month.

The annual inflation rate in Taiwan rose to 1.31% in December, accelerating from a downwardly revised 1.23% in November, marking the eighth consecutive month below the central bank’s 2% target. The increase was primarily driven by higher prices in education and entertainment (1.69% vs 1.26% in November) and miscellaneous goods and services (3.34% vs 2.79%), along with a rebound in clothing (0.98% vs -0.17%). Housing prices remained stable at 1.86%. In contrast, price growth slowed in food (1.24% vs 1.47%) and health care (1.53% vs 1.84%), while transportation and communication prices declined further (-1.36% vs -1.15%). On a seasonally adjusted monthly basis, consumer prices rose 0.14% in December, following a 0.09% increase in November.

The annual inflation rate in Taiwan eased to 1.23% in November, the lowest since March 2021, down from a downwardly revised 1.47% in October. This marked the seventh consecutive month below the central bank’s 2% target. The moderation was largely driven by softer price gains in food (1.48% vs 2.00% in October), housing (1.86% vs 2.00%), education and entertainment (1.25% vs 1.44%), and miscellaneous goods and services (2.84% vs 3.16%), while clothing prices turned negative (-0.13% vs 0.42%). In contrast, costs accelerated in health care (1.87% vs 1.75%), and the declines moderated in transportation and communication (-1.15% vs -1.40%). On a seasonally adjusted basis, consumer prices rose 0.09% from October, following a 0.25% increase the previous month.