Taiwan Inflation Rate at 4-Month Low

2026-09-08 08:18 By Czyrill Jean Coloma 1 min. read

Taiwan’s annual inflation rate slowed to 2.04% in August 2026 from 2.54% in the previous month.

While this was the lowest reading since April, it still marked the fourth consecutive month of inflation above the central bank’s 2% target, keeping investors on edge and reinforcing expectations of a rate hike ahead of the Central Bank of the Republic of China’s policy decision next week.

Food prices eased sharply to 0.79% from 2.49% in July, marking the lowest increase since deflation in March.

Inflation also moderated for housing (2.31% vs 2.32%), health (0.61% vs 0.76%), and miscellaneous goods and services (2.73% vs 3.27%), while education and entertainment remained stable at 3.22%.

In contrast, prices accelerated for transportation and communication (2.77% vs 2.72%) and clothing and footwear (2.09% vs 1.66%).

On a seasonally adjusted monthly basis, consumer prices rose 0.13%, easing from a revised 0.19% in July and hitting their lowest level since November 2025.



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Taiwan Inflation Rate at 4-Month Low
Taiwan’s annual inflation rate slowed to 2.04% in August 2026 from 2.54% in the previous month. While this was the lowest reading since April, it still marked the fourth consecutive month of inflation above the central bank’s 2% target, keeping investors on edge and reinforcing expectations of a rate hike ahead of the Central Bank of the Republic of China’s policy decision next week. Food prices eased sharply to 0.79% from 2.49% in July, marking the lowest increase since deflation in March. Inflation also moderated for housing (2.31% vs 2.32%), health (0.61% vs 0.76%), and miscellaneous goods and services (2.73% vs 3.27%), while education and entertainment remained stable at 3.22%. In contrast, prices accelerated for transportation and communication (2.77% vs 2.72%) and clothing and footwear (2.09% vs 1.66%). On a seasonally adjusted monthly basis, consumer prices rose 0.13%, easing from a revised 0.19% in July and hitting their lowest level since November 2025.
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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.
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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.
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