Taiwan's inflation hits 17-month high in June

Taipei, July 7 (CNA) Taiwan's inflation hit the highest level for 17 months in June largely on a spike in fuel and food prices, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Tuesday.

Data compiled by the DGBAS showed the country's consumer price index rose 2.60 percent from a year earlier in June, marking the second consecutive month CPI growth has topped the 2 percent alert level set by the central bank. The June growth was the highest since January 2025, when the CPI grew 2.67 percent.

Core CPI, which excludes fruit, vegetables and energy, rose 2.45 percent from a year earlier in June, also above the 2 percent alert level.

On a month-to-month basis, the June CPI grew 0.52 percent and after seasonal adjustments rose 0.21 percent.

In the first six months of this year, Taiwan's CPI rose 1.70 percent from a year earlier with core CPI up 2.03 percent.

The DGBAS said although domestic gasoline and diesel prices were cut in late June after international crude oil prices fell, local fuel prices for the month were still higher than a year earlier.

As a result, transportation and communications expenses in June rose 4.14 percent from a year earlier with fuel prices soaring 19.45 percent and air ticket prices jumping 13.49 percent, the DGBAS said.

Food prices rose 1.78 percent from a year earlier in June with vegetable prices up 10.05 percent due to bad weather, while the cost of dining out moved higher by 3.02 percent, the DGBAS added.

In June, living costs rose 2.20 percent from a year earlier with rents up 1.78 percent, natural gas prices rising 7.53 percent and electricity rates up 4.47 percent, according to the DGBAS.

Last month, the cost of a basket of 17 government-monitored household necessities, including rice, pork, bread, eggs, sugar, cooking oil, shampoo, and toilet paper, rose 2.17 percent, up from 1.50 percent in May.

Meanwhile, the producer price index (PPI) rose 15.10 percent from a year earlier in June largely due to the rising cost of crude oil, coal-related items, computers, electronic devices, optoelectronics products, chemical materials and drugs, the DGBAS said, adding that lower agricultural prices helped to offset the growth.

The import price index rose 23.07 percent from a year earlier in June in Taiwan dollar terms but rose 15.40 percent in U.S. dollar terms, while the export price index rose 26.63 percent in Taiwan dollars and 18.75 percent in U.S. dollars, the data showed.

In the first six months, Taiwan's PPI grew 6.41 percent from a year earlier, according to the DGBAS.