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Central Bank sees Taiwan’s 2022 inflation rate above 2%

War in Ukraine, China COVID lockdowns play key role in pushing prices up

The Central Bank sees Taiwan's inflation rate for 2022 above 2%. 

The Central Bank sees Taiwan's inflation rate for 2022 above 2%.  (CNA photo)

TAIPEI (Taiwan News) — The Russian invasion in Ukraine and the COVID-19 lockdowns in China will result in a 2022 inflation rate higher than 2% for Taiwan, the Central Bank said Wednesday (May 18).

The bank’s views on the evolution of the Consumer Price Index (CPI) for the second half of the year are included in a report it will present to the Legislative Yuan Thursday (May 19), CNA reported.

Taiwan’s inflation rate surged to 3.38% in April, its highest rate in more than nine years, but was expected to level off in the middle of the year before falling toward the end, though the overall rate for the year would still stay above 2%, the bank’s report said.

While Asia Pacific economies were expected to recover from the COVID pandemic, inflation will stay for some time, according to the bank’s analysts. The stalemate and uncertainty over the war in Ukraine and the harsh lockdowns in China worsened supply chain bottlenecks and drove up prices for items ranging from energy products to wheat and raw materials.

In addition, regional political risks and climate change developments are also injecting elements of uncertainty into the inflation picture for the second half of 2022, the Central Bank said.