Taipei: Taiwan's consumer price index (CPI) climbed over 2 percent year-on-year for the fourth straight month in August, surpassing a threshold established by the central bank, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported on Tuesday.
According to Focus Taiwan, DGBAS data revealed the CPI increased by 2.04 percent in August compared to the previous year, easing from a 2.52 percent rise in July. The core CPI, which excludes fruit, vegetables, and energy, saw a 2.30 percent increase year-on-year in August, also exceeding the 2-percent mark. On a month-to-month basis, the August CPI experienced a slight decline of 0.01 percent, while seasonal adjustments showed a 0.13 percent increase. Over the first eight months of this year, Taiwan's CPI went up by 1.84 percent from the previous year, with core CPI rising by 2.11 percent.
Tsai Hsiu-hui, the head of the DGBAS's general statistics section, noted that despite the government's efforts to freeze domestic gasoline and diesel prices in August, fuel prices rose more than 10 percent from a year earlier, due to a relatively low comparison base. Tsai attributed the rise in education and entertainment expenses to higher group travel costs and noted an increase in dining-out expenses, contributing to inflationary pressure.
In August, transportation and communication prices rose by 2.77 percent year-on-year, with fuel prices climbing 11.86 percent and airfares increasing 10.75 percent, according to DGBAS data. Education and entertainment expenses rose by 3.22 percent, with prices for PCs and accessories up 9.19 percent and group travel costs increasing by 4.14 percent.
Tsai indicated that food prices saw a modest rise of 0.79 percent year-on-year in August, as vegetable prices dropped 21.64 percent due to last year's high comparison base. However, dining-out expenses rose by 3.17 percent, marking the largest increase since December 2025, when they rose by 3.27 percent. Tsai highlighted that the growth in dining-out expenses, consistently above 3 percent for about three months, appeared persistent and unlikely to ease soon.
Consumers experienced some relief in the cost of a basket of 17 government-monitored household necessities, which rose by 1.82 percent in August, down from 1.95 percent in July. Meanwhile, the producer price index (PPI) increased by 16.75 percent year-on-year in August, mainly due to higher prices for crude oil, coal-related products, computers, electronic devices, optoelectronic products, chemical materials, and pharmaceuticals.
The import price index rose by 27.89 percent year-on-year in Taiwan dollar terms and by 20.45 percent in U.S. dollar terms, while the export price index increased by 30.64 percent in Taiwan dollar terms and by 23.05 percent in U.S. dollar terms, the data indicated. Looking ahead, Tsai projected that CPI growth could remain above 2 percent in September, with expected rises in fuel and vegetable prices, while dining-out expenses are likely to continue growing above 3 percent. Despite the CPI increase, Tsai stated that inflationary pressure in Taiwan remained mild, with no signs of imported inflation.