Taiwan Inflation Rate

The annual inflation rate in Taiwan climbed to 2.29% in March 2025 from a near four-year low of 1.58% in the previous month, though slightly below market expectations of 2.3%. While inflation is not expected to be a major concern for Taiwan's central bank in the near term, policymakers will remain vigilant in light of potential challenges following US President Donald Trump's announcement of a 32% tariff on Taiwanese imports. Prices increased at a faster pace for food (4.9% vs 3.98% in February), housing (2.2% vs 2.18%), miscellaneous (2.97% vs 1.14%), and health (2% vs 1.9%). In addition, costs recovered for education and entertainment (0.8% vs -1.04%). Meanwhile, deflation worsened for transportation and communication (-0.51% vs -0.23%). On a seasonally adjusted monthly basis, consumer prices eased to a three-month low of 0.2% in March 2025 from a downwardly revised 0.24% in the previous month.