Cheng Li-chun: Q1 CPI Annual Growth Rate Lower Than Expected, Price Stabilization Measures Effective
The Executive Yuan announced that the Q1 CPI annual growth rate was 1.23%, lower than the predicted 1.38%, due to various price stabilization measures. These measures included applying a minimum price principle for gasoline and diesel, extending tax reductions on key raw materials, and freezing prices for natural gas, electricity, and public transport. The Ministry of Economic Affairs is also promoting increased production of ethylene and polyethylene to meet domestic demand and a flat-price project for plastic bags.
📋 Article Processing Timeline
- 📰 Published: April 9, 2026 at 00:00
- 🔍 Collected: April 9, 2026 at 01:00 (1h 0m after Published)
- 🤖 AI Analyzed: April 15, 2026 at 19:10 (162h 10m after Collected)
The Executive Yuan announced through a press release that Vice Premier Cheng Li-chun convened the 5th ad-hoc meeting of the "Price Stabilization Task Force" today. She noted that in response to rising oil and gas prices due to the Middle East situation, domestic gasoline and diesel prices have adopted the principle of lowest prices among neighboring Asian countries and a special stabilization mechanism since the week of March 9, with CPC Corporation absorbing international oil price increases.
Cheng Li-chun stated that with measures such as extending tax reductions on key raw materials, maintaining unchanged prices for household natural gas and bottled gas in April, freezing electricity prices, maintaining public transportation fares, and freezing fertilizer prices, the Q1 CPI annual growth rate was 1.23%, lower than the original forecast of 1.38%. She urged all ministries and agencies to continue implementing the seven major measures for stabilizing people's livelihoods in response to the Middle East conflict, ensuring the annual CPI growth rate is controlled within the 2% target.
Cheng Li-chun also mentioned that ethylene production capacity has been expanded, with total ethylene output reaching 169,000 tons in April and an estimated 180,000 tons in May, sufficient to meet domestic demand of approximately 118,000 tons. For polyethylene, Formosa Plastics and USI Corporation's total output in April can reach 27,500 tons, supplying the domestic monthly demand of 22,000 tons. The Ministry of Economic Affairs has also launched a flat-price project for plastic bags, and for operators facing shortages, the Ministry of Economic Affairs is requested to strengthen coordination and mediation to assist with allocation.
Furthermore, Cheng Li-chun pointed out that the Ministry of Health and Welfare and the Ministry of Economic Affairs must ensure priority access to raw materials for medical device and pharmaceutical manufacturers. For the 27 medical device and pharmaceutical manufacturers reporting difficulties in obtaining raw materials, the Ministry of Economic Affairs is requested to coordinate with suppliers to prioritize their needs. For the 72 manufacturers reporting increased raw material costs, the Ministry of Health and Welfare has estimated the increased amount and plans to allocate NT$20 billion from the National Health Insurance Fund's safety reserve, which can be supported by the "Special Act for Strengthening Economic, Social, and National Security Resilience in Response to International Situations," to ensure the stable operation of the medical system.
To mitigate the impact of rising international oil prices on distant-water fisheries, Cheng Li-chun requested the Ministry of Agriculture to continue monitoring the cost of fuel for coastal and offshore fisheries. In addition to existing subsidy measures, if fishermen's fuel purchase costs exceed the 2013 peak, further assistance measures should be promptly initiated.
Additionally, Cheng Li-chun also asked the Public Construction Commission to monitor the asphalt shortage situation. For public works, considering the increased uncertainty of contract performance costs, the Public Construction Commission is requested to assist operators in managing risks through a three-level price adjustment mechanism (individual items, medium categories, and overall index) to flexibly handle performance risks.
To curb illegal price gouging, the inter-ministerial "Joint Price Inspection Team" has inspected and visited 1,376 manufacturers or vendors. Cheng Li-chun requested the inspection team to increase the density and intensity of inspections, especially regarding recent suspicions of supply-demand imbalance in plastic products, to trace the source and stabilize market order. (Editor: Su Lung-chi) 1150408
Cheng Li-chun stated that with measures such as extending tax reductions on key raw materials, maintaining unchanged prices for household natural gas and bottled gas in April, freezing electricity prices, maintaining public transportation fares, and freezing fertilizer prices, the Q1 CPI annual growth rate was 1.23%, lower than the original forecast of 1.38%. She urged all ministries and agencies to continue implementing the seven major measures for stabilizing people's livelihoods in response to the Middle East conflict, ensuring the annual CPI growth rate is controlled within the 2% target.
Cheng Li-chun also mentioned that ethylene production capacity has been expanded, with total ethylene output reaching 169,000 tons in April and an estimated 180,000 tons in May, sufficient to meet domestic demand of approximately 118,000 tons. For polyethylene, Formosa Plastics and USI Corporation's total output in April can reach 27,500 tons, supplying the domestic monthly demand of 22,000 tons. The Ministry of Economic Affairs has also launched a flat-price project for plastic bags, and for operators facing shortages, the Ministry of Economic Affairs is requested to strengthen coordination and mediation to assist with allocation.
Furthermore, Cheng Li-chun pointed out that the Ministry of Health and Welfare and the Ministry of Economic Affairs must ensure priority access to raw materials for medical device and pharmaceutical manufacturers. For the 27 medical device and pharmaceutical manufacturers reporting difficulties in obtaining raw materials, the Ministry of Economic Affairs is requested to coordinate with suppliers to prioritize their needs. For the 72 manufacturers reporting increased raw material costs, the Ministry of Health and Welfare has estimated the increased amount and plans to allocate NT$20 billion from the National Health Insurance Fund's safety reserve, which can be supported by the "Special Act for Strengthening Economic, Social, and National Security Resilience in Response to International Situations," to ensure the stable operation of the medical system.
To mitigate the impact of rising international oil prices on distant-water fisheries, Cheng Li-chun requested the Ministry of Agriculture to continue monitoring the cost of fuel for coastal and offshore fisheries. In addition to existing subsidy measures, if fishermen's fuel purchase costs exceed the 2013 peak, further assistance measures should be promptly initiated.
Additionally, Cheng Li-chun also asked the Public Construction Commission to monitor the asphalt shortage situation. For public works, considering the increased uncertainty of contract performance costs, the Public Construction Commission is requested to assist operators in managing risks through a three-level price adjustment mechanism (individual items, medium categories, and overall index) to flexibly handle performance risks.
To curb illegal price gouging, the inter-ministerial "Joint Price Inspection Team" has inspected and visited 1,376 manufacturers or vendors. Cheng Li-chun requested the inspection team to increase the density and intensity of inspections, especially regarding recent suspicions of supply-demand imbalance in plastic products, to trace the source and stabilize market order. (Editor: Su Lung-chi) 1150408