TAIPEI (Taiwan News) — A majority of Taiwan consumers expect their cost of living to rise over the next year, with the average increase projected at 8.77%, according to a survey published Monday by Academia Sinica’s Institute of Economics.
The survey found that 63.17% of respondents expected their cost of living to increase over the next 12 months, per UDN. Expectations were highest for transportation and energy expenses, which were projected to rise 15.87%, followed by food and dining costs at 12.54%.
The institute said higher global energy prices and increased market volatility following the Iran conflict have contributed to stronger inflation expectations, per CNA. Rising transportation and petroleum-related raw material costs have also added pressure on domestic prices.
Although government measures have helped limit the impact of global energy prices on domestic fuel costs, Taiwan’s inflation rate has accelerated in recent months, the institute explained. Annual consumer price index growth exceeded 2% in both May and June, while the import price index measured in New Taiwan dollars rose 23.07% year over year in June.
Institute of Economics Research Fellow Yang Shu-chun (楊淑珺) said annual CPI growth was still relatively modest at 1.2% in March. However, the survey suggests consumers had already begun anticipating higher inflation before the subsequent increase in actual price growth.
Yang added that international oil prices have fallen from their peak of more than NT$3,200 (US$100) per barrel in April, and cost pressures may not yet have been fully reflected. Therefore, she said it would be premature to assume that inflationary pressures will ease due to lower oil prices.
