Taiwan's CPI growth tops 2% alert level in May

Taipei, June 5 (CNA) Taiwan's consumer price index (CPI) growth in May topped a 2 percent alert level set by the central bank largely due to a spike in crude oil prices amid military conflicts in the Middle East, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Friday.

Data compiled by the DGBAS showed the local CPI rose 2.20 percent from a year earlier in May after a 1.73 percent increase in April, marking the first time local inflation breached 2 percent since April 2025, when the CPI grew 2.03 percent.

In May, the local core CPI, which excludes fruit, vegetables and energy, rose 2.12 percent from a year earlier, also above the 2 percent alert, the data indicated.

In the first five months of this year, Taiwan's CPI rose 1.52 percent from a year earlier, with the core CPI up 1.96 percent, the data showed.

Due to an increase in crude prices, the DGBAS said that communications and transportation prices rose 4.00 percent from a year earlier after fuel prices surged 20.09 percent, the highest growth in in four and half years, while air ticket prices gained 10.37 percent on an increase in fuel surcharges, the highest growth in about four and a half years.

In addition, education and entertainment spending rose 3.03 percent from a year earlier with tour group fares rising 3.68 percent, the DGBAS said.

Food prices also rose 1.36 percent from a year earlier in May, with dining-out expenses rising 2.99 percent and prices of vegetables, eggs and fishery items gaining 9.69 percent, 7.87 percent and 4.05 percent, respectively, the DGBAS said.

DGBAS senior executive officer Tsao Chih-hung (曹志弘) told reporters that an increase in vegetable and fuel prices, as well as tour group expenses and plane tickets, pushed up the May CPI growth by 0.4 percentage points.

Tsao said that as air fuel surcharges will be cut from June 7, which is expected to moderate air ticket price growth.

Meanwhile, the producer price index (PPI) rose 14.11 percent from a year earlier in May largely due to the rising cost of crude, coal-related items, chemical materials, drugs, computers, and electronics and optoelectronics products, the DGBAS said.

Tsao said strong AI demand pushed up electronics prices in May.

The import price index surged 22.33 percent from a year earlier in May in Taiwan dollar terms and rose 17.21 percent in U.S. dollar terms, while the export price index jumped 23.25 percent in Taiwan dollar terms and gained 18.09 percent in U.S. dollar terms, the data showed.

In the first five months of the year, the PPI rose 4.90 percent from a year earlier, according to the DGBAS.

Tsao emphasized the local CPI growth stayed mild without a sign of import inflation, but he said the index could rise over 2 percent in June on a relatively low comparison base a year earlier.