Taiwan's inflation tops 2% threshold for 4th straight month

Taipei, Sept. 8 (CNA) Taiwan's consumer price index (CPI) rose more than 2 percent year-on-year for the fourth consecutive month in August, exceeding a threshold set by the central bank, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Tuesday.

DGBAS data showed the CPI rose 2.04 percent in August from a year earlier, easing from a 2.52 percent increase in July.

Core CPI, which excludes fruit, vegetables and energy, rose 2.30 percent from a year earlier in August, also above the 2-percent threshold.

On a month-to-month basis, the August CPI fell 0.01 percent, while after seasonal adjustments, the index rose 0.13 percent.

In the first eight months of this year, Taiwan's CPI rose 1.84 percent from a year earlier, with core CPI up 2.11 percent.

Tsai Hsiu-hui (蔡秀慧), head of the DGBAS's general statistics section, said that while the government continued to freeze domestic gasoline and diesel prices in August, fuel prices still rose more than 10 percent from a year earlier due to a relatively low comparison base.

Tsai said higher group travel costs pushed up education and entertainment expenses, while an increase in dining-out costs also added to inflationary pressure.

In August, transportation and communication prices rose 2.77 percent from a year earlier, as fuel prices climbed 11.86 percent and airfares rose 10.75 percent, DGBAS data showed.

Education and entertainment expenses rose 3.22 percent from a year earlier, with prices of PCs and accessories up 9.19 percent and group travel costs up 4.14 percent, the data showed.

Tsai said food prices rose only 0.79 percent from a year earlier in August, as vegetable prices plunged 21.64 percent due to a relatively high comparison base last year. Dining-out expenses, however, rose 3.17 percent, the largest increase since December 2025, when they rose 3.27 percent.

Tsai said growth in dining-out expenses, which has remained above 3 percent for about three months, appeared persistent and was unlikely to ease quickly.

Consumers saw some relief in the cost of a basket of 17 government-monitored household necessities, including rice, pork, bread, eggs, sugar, cooking oil, shampoo, and toilet paper, which rose 1.82 percent in August, down from 1.95 percent in July.

Meanwhile, the producer price index (PPI) rose 16.75 percent from a year earlier in August largely due to higher prices for crude oil, coal-related products, computers, electronic devices, optoelectronic products, chemical materials and pharmaceuticals, the DGBAS said.

The import price index rose 27.89 percent from a year earlier in August in Taiwan dollar terms and 20.45 percent in U.S. dollar terms, while the export price index rose 30.64 percent in Taiwan dollar terms and 23.05 percent in U.S. dollar terms, the data showed.

Looking ahead, Tsai said CPI growth could remain above 2 percent in September, with fuel and vegetable prices expected to rise, while growth in dining-out expenses is likely to remain above 3 percent.

Despite the increase in the CPI, Tsai said inflationary pressure in Taiwan stayed mild, with no signs of imported inflation.