Taipei: Taiwan's consumer price index (CPI) growth in May exceeded the 2 percent alert level established by the central bank, primarily due to an increase in crude oil prices amid military conflicts in the Middle East.
According to Focus Taiwan, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported that the local CPI rose 2.20 percent from a year earlier in May, following a 1.73 percent increase in April. This marks the first instance of local inflation surpassing 2 percent since April 2025, when CPI growth was at 2.03 percent.
The data revealed that the core CPI, excluding fruit, vegetables, and energy, also rose by 2.12 percent from a year earlier, surpassing the 2 percent alert. For the first five months of the year, Taiwan's CPI increased by 1.52 percent from the previous year, with core CPI up by 1.96 percent. The DGBAS attributed the rise to increased crude prices, leading to a 4.00 percent increase in communications and transportation prices and a 20.09 percent surge in fuel prices, the highest in four and a half years. Air ticket prices rose by 10.37 percent, driven by higher fuel surcharges.
In addition, education and entertainment expenses increased by 3.03 percent from a year earlier, with tour group fares up by 3.68 percent. Food prices also saw a rise of 1.36 percent, with dining-out expenses up by 2.99 percent and prices of vegetables, eggs, and fishery items increasing by 9.69 percent, 7.87 percent, and 4.05 percent, respectively.
DGBAS senior executive officer Tsao Chih-hung highlighted that the increase in vegetable and fuel prices, along with tour group expenses and plane tickets, contributed to the 0.4 percentage point rise in May's CPI growth. Tsao noted that a reduction in air fuel surcharges from June 7 is expected to moderate air ticket price growth.
Meanwhile, the producer price index (PPI) rose by 14.11 percent from a year earlier in May, largely due to the rising costs of crude, coal-related items, chemical materials, drugs, computers, electronics, and optoelectronics products. Tsao pointed out that strong AI demand pushed up electronics prices in May.
The import price index surged by 22.33 percent in Taiwan dollar terms and 17.21 percent in U.S. dollar terms, while the export price index increased by 23.25 percent in Taiwan dollar terms and 18.09 percent in U.S. dollar terms. For the first five months of the year, the PPI rose by 4.90 percent from a year earlier.
Tsao emphasized that the local CPI growth remained mild without signs of import inflation but warned that the index could rise over 2 percent in June due to a relatively low comparison base from the previous year.