---
title: "Inflation remains above 2 percent for third month"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295146772.md"
description: "Taiwan's consumer inflation remained above the central bank's 2% alert level for a third consecutive month, rising 2.54% year-on-year due to higher fuel costs, airfares, and food prices. While core CPI rose 2.38%, domestic price pressures remain moderate with no evidence of broad-based imported inflation. Meanwhile, the producer price index surged 16.94%, the largest increase on record, driven by mineral products and electronic components linked to AI demand."
datetime: "2026-08-06T17:17:36.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295146772.md)
  - [en](https://longbridge.com/en/news/295146772.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295146772.md)
generator: "portal-rs"
---

# Inflation remains above 2 percent for third month

Taiwan’s consumer inflation remained above the central bank’s 2 percent alert level for a third consecutive month last month due to higher fuel costs, airfares and food prices, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.

The consumer price index (CPI) rose 2.54 percent last month from a year earlier, slowing from June’s 2.59 percent increase, while core CPI, which strips out volatile components such as fresh food and energy, rose 2.38 percent, the agency said. 

“Domestic price pressures remain moderate, and there is no evidence of broad-based imported inflation despite CPI staying above 2 percent for three consecutive months,” DGBAS price statistics department head Tsai Hsiu-hui (蔡秀慧) said. 

Tsai attributed last month’s increase mainly to higher fuel costs, international airfare and travel-related expenses. 

Inflation could ease further this month if weather conditions do not disrupt agricultural supplies, although the figure might remain above the 2 percent threshold, she said. 

Among major CPI categories, miscellaneous goods and services posted the sharpest increase, rising 3.27 percent year-on-year, as elevated gold prices pushed jewelry costs up, DGBAS data showed. 

Recreation and education expenses increased 3.22 percent, driven by an 8.23 percent surge in computer equipment and software prices, as well as higher costs for overseas travel. 

The producer price index (PPI) jumped 16.94 percent year-on-year, the largest increase on record and the steepest gain in about five-and-a-half years, the DGBAS said. 

Import prices climbed 16.64 percent year on year, partly reflecting the impact of a weaker New Taiwan dollar that made imported goods more expensive, the agency said. 

The increase was led by higher mineral product prices and a surge in the cost of electronic components and memory chips, as booming artificial intelligence demand lifted prices across the technology supply chain, it said. 

As most imported products are intended for export purposes, their impact on domestic prices is limited, Tsai said. 

While higher costs might affect some consumer products, such as computers and peripherals, their influence is smaller than frequently purchased items including vegetables, fruits and dining-out expenses, which carry greater weight in the CPI basket, she said. 

During the first seven months of the year, CPI rose 1.8 percent from a year earlier, while PPI increased 7.93 percent. 

Fuel prices remain the biggest uncertainty for Taiwan’s inflation outlook, as fluctuations in global oil prices and a relatively low comparison base from a year earlier could keep fuel-related inflation elevated in the coming months, Tsai said.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**