TAIPEI (Taiwan News) — Taiwan’s consumer prices rose 1.2% year-on-year in March, tempered by falling fruit prices and government interventions, the Directorate-General of Budget, Accounting, and Statistics said Wednesday.

The Iran conflict drove global oil prices past NT$3,200 (US$100) per barrel, stoking fears of inflation, per CNA. However, the March CPI remained its lowest in nearly five years when Lunar New Year effects were excluded.

OPEC crude averaged NT$3,700 per barrel in March, up 57.2% year-on-year, but domestic fuel prices remained largely stable, with gasoline costs down 0.33% year-on-year, reflecting the impact of government interventions.

DGBAS Senior Executive Officer Tsao Chih-hung (曹志弘) said two factors helped contain March inflation: the government’s price-stabilization measures that absorbed much of the energy price shock, and favorable weather boosted fruit supply. Fruit prices dropped 23.32% from last year and lowered CPI by 0.61 percentage points, per Liberty Times.

Tsao noted CPC Corp’s 95-octane gasoline averaged NT$30.64 in March, slightly below last year, while domestic fuel costs rose just 6.49% from February, far less than international oil increases.

Despite March’s mild numbers, Tsao said deferred oil price hikes mean April will see significant price pressures. Even with a price freeze at NT$33.9 for gasoline, the increase over March’s average would push CPI up by 0.22 percentage points, with higher international fuel surcharges and airfares adding further impact.

March dining-out costs also rose noticeably month-on-month, reflecting early effects of higher energy prices on daily life. Tsao cautioned that April will show whether this trend is temporary or signals sustained inflation.

Core CPI, excluding fruits, vegetables, and energy, reached 1.94% in March, and deferred oil and energy price impacts are expected to push it around 2% in April. Meanwhile, import prices rose 8.53% YoY, the largest increase in 44 months, which could feed into domestic production costs in the coming quarters.

Tsao said while international energy prices surged, strong government stabilization measures have so far prevented imported inflation, keeping domestic price increases manageable.