TAIPEI (Taiwan News) — Taiwan’s consumer confidence fell to its lowest level in over three years in March as energy-driven inflation concerns weighed on sentiment, according to a National Central University report.

The consumer confidence index dropped 4.28 points to 62.3, marking a second month of decline, per CNA. All six sub-indicators fell, including price expectations, household finances, economic outlook, job prospects, stock investment timing, and durable goods purchases.

NCU Taiwan Economic Development Research Center Director Wu Ta-jen (吳大任) said the ongoing Iran war has triggered an energy crisis. Rising oil prices are increasing inflation risks and are unlikely to ease in the short term, he added.

Iran’s control of the Strait of Hormuz has disrupted global oil and gas supplies, pushing prices higher. Wu warned that increases could squeeze household spending and weaken overall demand.

If the impact continues, Wu said it could spread from consumption to corporate revenues and the labor market. He added that confidence in finances, jobs, and the broader economy could deteriorate further.

The government has taken steps to cushion the impact, including measures to stabilize fuel and electricity prices. Wu said such policies only delay inflation pressures rather than resolve them.

Among the CCI components, sentiment on stock investment timing over the next six months saw the sharpest drop, falling 5.58 points to 22.88. The outlook for prices also declined, dropping 4.71 points to 32.4.

Wu said the weak investment indicator reflects caution rather than panic, as Taiwan’s stock market remains near historic highs. Many investors are waiting for a pullback before entering the market, he added.