TAIPEI (Taiwan News) — Taiwan’s consumer prices are expected to grow at a moderate pace in the second half of the year, with full-year inflation likely to stay below 2%, the National Development Council said Saturday.
The forecast came after Taiwan’s consumer price index rose 2.2% year-on-year in May, passing the 2% inflation warning level and reaching its highest point in nearly 14 months, per CNA.
The NDC said the May increase was driven mainly by fuel prices and short-term weather effects rather than a broader rise in daily expenses. Fuel prices rose 20.09% from a year earlier, the biggest jump in nearly five years.
CPC Corp., Taiwan has kept gasoline and diesel prices frozen since April, absorbing much of the increase in global oil prices, the NDC said, per the report. However, lower fuel prices a year earlier made May’s year-on-year comparison look sharper. Heavy rain and seasonal flooding also disrupted vegetable supply, causing short-term price fluctuations.
The NDC said prices for daily necessities stayed reasonably constant. It said 17 key consumer goods rose 1.50% year-on-year in May, with food price increases keeping below 3% for the last three months, according to the report. Out of the roughly 300 products tracked by the statistics agency, about 90% were the same or cheaper.
The council said easing in the US-Iran conflict, oil price stabilization measures, and preparations for fruit and vegetable supply should help limit price pressure in the months ahead.
