Taiwan Annual Inflation Slows in July

Taiwan's annual inflation eased to 2.54% in July 2026 from 2.6% in June, marking the first slowdown in five months but exceeding market expectations of 2.4%. Inflation stayed above the central bank's 2% target for a third consecutive month, as renewed tensions in the Middle East kept global energy prices elevated. The moderation was driven by softer inflation for commodity goods (2.32% vs. 2.49%) and housing (2.20% vs. 2.32%), while clothing inflation edged up (1.67% vs. 1.66%). In contrast, food inflation accelerated to 2.49% from 1.78%, the highest since September 2025. Services inflation also picked up to 2.85% from 2.57%, while inflation accelerated for transport and communication (4.14% vs. 2.72%), health (0.97% vs. 0.76%), and education and entertainment (3.60% vs. 3.22%). On a monthly basis, consumer prices rose 0.18%, the lowest level since the start of the year, after a 0.21% gain in June.

Taiwan's annual inflation rate rose to 2.6% in June 2026 from 2.2% in the previous month. It marked the second consecutive month above the central bank's 2% target and the highest level since January 2025, driven in part by elevated fuel costs linked to disruptions in the Strait of Hormuz following the Iran conflict. In the latest development, US and Iranian officials announced that they had agreed on a framework to end hostilities, lift the US blockade of Iran, and reopen the vital shipping route. Price growth accelerated across all major categories, including food (1.78% vs 1.36% in May), housing (2.20% vs 2.06%), transportation and communication (4.14% vs 4%), clothing (1.67% vs 1.01%), healthcare (0.97% vs 0.70%), education and entertainment (3.60% vs 3.03%), and miscellaneous goods and services (3.30% vs 2.44%). On a seasonally adjusted monthly basis, consumer prices eased to 0.21% from 0.26% in May, marking the lowest reading since February.

Taiwan's annual inflation rate jumped to 2.2% in May 2026 from 1.74% in the previous month. It marked the highest reading since March 2025 and the first time in a year that inflation has topped the 2% mark, as elevated freight and energy costs resulting from the Middle East conflict intensified inflationary pressures in the energy-dependent economy despite fuel and electricity subsidies. Price pressures intensified for food (1.36% vs 0.58% in April), transport and communication (4.00% vs 2.66%), clothing (1.01% vs 0.81%), and education and entertainment (3.03% vs 2.44%). Meanwhile, housing inflation was unchanged at 2.06%, while price growth eased for health (0.70% vs 1.03%) and miscellaneous goods and services (2.44% vs 2.48%). On a seasonally adjusted monthly basis, consumer prices slowed to 0.19% from a downwardly revised 0.46% in April. Considering the first five months of the year, consumer prices increased 1.52% compared to the same period a year earlier.