Taiwan Inflation Rate Lowest in 5 Years

Taiwan's annual inflation rate eased to 1.2% in March 2026, slowing from a ten-month high of 1.75% recorded in the previous month. This slowdown occurred despite surging global energy prices, driven by escalating tensions in the Middle East. The Taiwanese government intervened by absorbing nearly 75% of the fuel price hike through a stabilization mechanism to keep domestic fuel costs lower than those of neighboring economies. Officials assured that Taiwan’s energy needs would be met through May and signaled openness to restarting decommissioned nuclear plants to address growing electricity demand. Prices moderated for housing and utilities (2.02% vs 2.06% in February), while it slipped for food and non-alcoholic beverages (-0.22% vs 0.21%). In contrast, costs rebounded for transport (0.03% vs -0.86%). On a seasonally adjusted monthly basis, consumer prices stood at 0.19% in March, unchanged from the previous month. For the first three months of the year, the CPI increased by 1.23%.

Taiwan’s annual inflation rate climbed to 1.75% in February 2026, picking up from a five-year low of 0.69% in the previous month. It recorded the highest reading since April 2025, influenced in part by Lunar New Year holiday effects, while markets weigh the potential economic fallout from the Middle East conflict. Prices increased at a faster pace for housing (2.06% vs 1.82% in January), while deflation eased in transportation and communication (-0.86% vs -1.95%). Overall inflation was also supported by stronger price increases in health (1.73% vs 1.62%) and miscellaneous goods and services (5.06% vs 1.99%), alongside a rebound in education and entertainment (4.55% vs -0.97%). Meanwhile, price pressures moderated for food (0.21% vs 1.16%) and clothing (0.87% vs 1.58%). On a seasonally adjusted monthly basis, consumer prices rose 0.19%, from 0.10% in January. For the first two months of the year, the CPI increased 1.23% compared with the same period of the previous year.

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.