Fri, May 08, 2026 page9

• CPI rise moderate despite oil shocks

  • By Crystal Hsu / Staff reporter
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  Taiwan’s inflation remained relatively benign last month, despite higher fuel and food prices, with headline consumer inflation staying below the central bank’s 2 percent alert level for a 12th consecutive month, aided by government price stabilization measures, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.

  The consumer price index (CPI) rose 1.74 percent from a year earlier last month, accelerating from 1.2 percent in March, mainly due to higher fuel and produce prices amid rising global oil costs linked to tensions in the Middle East and volatile weather conditions that disrupted agricultural supply.

  Transportation and communication costs recorded the largest increase among major categories, rising 2.66 percent, as fuel prices surged 13.6 percent year-on-year — the sharpest increase in nearly four years, DGBAS official Tsao Chih-hung (曹志弘) said. Train fares and international airfares also increased.

  

  A woman shops for fruit at a supermarket in Taipei’s Wanhua District yesterday.

  Photo: CNA

  Government stabilization measures helped prevent rising energy costs from spilling over into broader consumer inflation, Tsao said.

  Weather-related disruptions caused vegetable prices to rebound, while a fading high comparison base for fruit prices last year also pushed costs higher. Together, fruit and vegetable prices contributed about 0.25 percentage points to headline inflation, he said.

  However, underlying inflation pressures remained stable, with core CPI, which excludes vegetables, fruit and energy, rising 1.91 percent year-on-year, little changed from 1.94 percent in March.

  Inflation could edge slightly higher this month as airlines adjust fuel surcharges, but CPI growth is likely to remain below 2 percent if weather conditions stabilize and oil prices continue easing, Tsao said.

  International oil prices retreated after signs emerged that Iran might end disruption of shipping through the Strait of Hormuz, easing concerns over a global supply shock.

  Other price categories were broadly stable, suggesting domestic inflation pressures remained contained despite rising imported costs, Tsao said.

  Miscellaneous goods prices rose 2.48 percent, driven by a 12.78 percent increase in gold and jewelry prices amid elevated bullion markets, as well as higher personal care service costs.

  Recreation and education costs climbed 2.44 percent on higher prices for computer equipment, software and entertainment services, while healthcare costs rose 1.03 percent because of higher medical fees and hospital charges.

  Meanwhile, the import price index last month surged 9.22 percent from a year earlier, the fastest increase in 40 months, driven by rising energy costs and firm demand for artificial intelligence-related electronic components amid tight global supply, Tsao said.

  The sharp rise in import costs also fed into producer prices, with the producer price index climbing 8.54 percent year-on-year, led by gains in petroleum products, chemicals, electronics and semiconductor-related goods.

  The pass-through to consumer inflation remained limited, as electronic products account for a relatively small share of the CPI basket and are not purchased frequently by households, Tsao said.
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