Taiwan CPI Hits 2.6% 17-Month High as Import Prices Jump 23.1%
Updated
Updated · ING Think · Jul 7
Taiwan CPI Hits 2.6% 17-Month High as Import Prices Jump 23.1%
2 articles · Updated · ING Think · Jul 7
Summary
Taiwan’s June CPI accelerated to 2.6% year on year from 2.2% in May, beating a 2.3% market forecast and marking the highest reading since January 2025.
A 23.1% surge in import prices drove the pickup, with higher tech and energy costs feeding through as inflation broadened beyond fuel-linked categories.
Transportation and communication prices rose 4.1%, while housing hit 2.2%, entertainment 3.6% and services 2.9%, underscoring a broad-based rise above Taiwan’s 2% target.
Falling oil prices and easier base effects could make June the peak for 2026 inflation, but sticky readings near current levels would strengthen the case for a third-quarter rate hike.
ING said September remains a live policy meeting and still pencils in a 12.5-basis-point increase if inflation stays firm and growth remains strong.