Taiwan: Inflation rises in June from the prior month
Latest reading: Consumer prices rose 2.6% on a year-on-year basis in June, following a 2.2% increase in the previous month. June’s reading was the strongest since January 2025.
Relative to the previous month’s figures, there were higher price pressures for food (+1.8% in annual terms vs +1.4% in May), housing (+2.2% vs +2.1% in May), transportation (+4.1% vs +4.0% in May) and education and entertainment (+3.6% vs +3.0% in May).
Lastly, consumer prices rose 0.52% in June in month-on-month terms, following a 0.19% increase in the prior month.
Panelist insight: Regarding June’s reading, ING’s Lynn Song commented:
“Taiwan’s CPI inflation rose to a 17-month high of 2.6% YoY in June amid a broad-based uptick in inflation. This level looks likely to be at or near the peak for the year, given the fall in energy prices and more favourable base effects in the coming months, but if inflation stays sticky, the case for a third-quarter rate hike will strengthen.”