NDC: Consumer Prices Expected to Rise Moderately in H2, Full-Year CPI Below 2%
Taiwan's National Development Council (NDC) explained that the May CPI year-on-year increase of 2.2%, which breached the inflation alert line, was mainly due to a low base effect for fuel costs last year and short-term weather factors. The NDC stated that consumer goods prices remain stable, and prices are expected to rise moderately in the second half of the year, with the full-year CPI forecast to be below 2%.
📋 Article Processing Timeline
- 📰 Published: June 6, 2026 at 15:55
- 🔍 Collected: June 6, 2026 at 16:04 (9 min after Published)
- 🤖 AI Analyzed: June 6, 2026 at 16:23 (18 min after Collected)
(CNA reporter Su Siyun, Taipei, 6th) The Directorate-General of Budget, Accounting and Statistics (DGBAS) announced that the year-on-year increase in the Consumer Price Index (CPI) for May was 2.2%, breaching the 2% inflation alert line and drawing attention. The National Development Council (NDC) stated today that the May CPI of 2.2% was mainly due to the low base effect of fuel costs last year and short-term weather factors. It noted that current prices for consumer goods are stable, and prices are expected to rise moderately in the second half of the year, with the full-year CPI forecast to be below 2%.
The DGBAS announced today that the year-on-year increase in the CPI for May was 2.2%, breaking through the 2% inflation alert line and hitting a new high in nearly 14 months. Among the components, fuel costs surged by 20.09%, the largest increase in four and a half years, raising concerns about whether inflation is heating up in Taiwan.
The NDC issued a press release today providing three points of explanation. First, the year-on-year CPI increase of 2.2% in May, up from 1.73% in April, was primarily due to the low base effect of fuel costs last year and short-term weather factors.
The NDC explained that the impact of fuel costs on the overall CPI index expanded from 0.29 percentage points in April to 0.41 percentage points in May, mainly due to the low base effect from last year. Since the outbreak of the Middle East conflict this year, international oil prices have risen significantly. However, CPC Corporation has maintained a price freeze on gasoline and diesel since April, absorbing most of the international oil price increases. For example, the price of domestic 95 unleaded gasoline in May was only about 18% higher than before the conflict (February). Nevertheless, due to the low base effect of oil prices last year, the year-on-year increase in fuel costs in May expanded significantly. As for vegetables, recent heavy rains and the flood season have affected supply, leading to short-term price fluctuations.
Second, prices for consumer goods are stable, with 90% of surveyed items showing flat or declining prices. The NDC stated that the average year-on-year CPI increase from January to May this year was 1.52%, lower than South Korea's 2.38%. The year-on-year increase in May for 17 essential consumer goods frequently purchased by the public was only 1.50%. Additionally, the increase in dining-out costs has been below 3% for three consecutive months. The government continues to implement measures to stabilize prices through the 'Livelihood Stabilization Measures in Response to the Middle East Conflict'.
According to the DGBAS survey results, among over 300 surveyed items, prices for about 90% of items were flat or declined, with only a few items affected by international energy prices, weather factors, and increased service demand showing price increases.
Third, prices are expected to rise moderately in the second half of the year, with the full-year inflation rate forecast to be below 2%. The NDC stated that the recent trend towards de-escalation in the US-Iran conflict is becoming clearer. Coupled with the government's continued promotion of oil price stabilization measures, and efforts to improve CPC Corporation's financial health through project financing, budget allocations, and capital increases to enhance the capacity for implementing oil price stabilization policies, these factors help mitigate the impact of international oil price fluctuations on domestic prices.
Regarding the second half of last year, fruit and vegetable prices were significantly high due to extreme weather such as typhoons and heavy rain. Consequently, the comparison base for related prices in the second half of this year will be higher. The Ministry of Agriculture is closely monitoring production and sales, proactively stockpiling fruits and vegetables to ensure stable agricultural product prices.
The NDC emphasized that the government will continue to closely monitor domestic and international economic conditions and market supply-demand changes, work with relevant ministries to implement various price stabilization measures, and take necessary actions in a timely manner to maintain stable consumer prices. Prices are expected to rise moderately in the second half of the year, and the full-year CPI year-on-year increase is forecast to be below 2%. (Editor: Lin Shuyuan) 1150606
The DGBAS announced today that the year-on-year increase in the CPI for May was 2.2%, breaking through the 2% inflation alert line and hitting a new high in nearly 14 months. Among the components, fuel costs surged by 20.09%, the largest increase in four and a half years, raising concerns about whether inflation is heating up in Taiwan.
The NDC issued a press release today providing three points of explanation. First, the year-on-year CPI increase of 2.2% in May, up from 1.73% in April, was primarily due to the low base effect of fuel costs last year and short-term weather factors.
The NDC explained that the impact of fuel costs on the overall CPI index expanded from 0.29 percentage points in April to 0.41 percentage points in May, mainly due to the low base effect from last year. Since the outbreak of the Middle East conflict this year, international oil prices have risen significantly. However, CPC Corporation has maintained a price freeze on gasoline and diesel since April, absorbing most of the international oil price increases. For example, the price of domestic 95 unleaded gasoline in May was only about 18% higher than before the conflict (February). Nevertheless, due to the low base effect of oil prices last year, the year-on-year increase in fuel costs in May expanded significantly. As for vegetables, recent heavy rains and the flood season have affected supply, leading to short-term price fluctuations.
Second, prices for consumer goods are stable, with 90% of surveyed items showing flat or declining prices. The NDC stated that the average year-on-year CPI increase from January to May this year was 1.52%, lower than South Korea's 2.38%. The year-on-year increase in May for 17 essential consumer goods frequently purchased by the public was only 1.50%. Additionally, the increase in dining-out costs has been below 3% for three consecutive months. The government continues to implement measures to stabilize prices through the 'Livelihood Stabilization Measures in Response to the Middle East Conflict'.
According to the DGBAS survey results, among over 300 surveyed items, prices for about 90% of items were flat or declined, with only a few items affected by international energy prices, weather factors, and increased service demand showing price increases.
Third, prices are expected to rise moderately in the second half of the year, with the full-year inflation rate forecast to be below 2%. The NDC stated that the recent trend towards de-escalation in the US-Iran conflict is becoming clearer. Coupled with the government's continued promotion of oil price stabilization measures, and efforts to improve CPC Corporation's financial health through project financing, budget allocations, and capital increases to enhance the capacity for implementing oil price stabilization policies, these factors help mitigate the impact of international oil price fluctuations on domestic prices.
Regarding the second half of last year, fruit and vegetable prices were significantly high due to extreme weather such as typhoons and heavy rain. Consequently, the comparison base for related prices in the second half of this year will be higher. The Ministry of Agriculture is closely monitoring production and sales, proactively stockpiling fruits and vegetables to ensure stable agricultural product prices.
The NDC emphasized that the government will continue to closely monitor domestic and international economic conditions and market supply-demand changes, work with relevant ministries to implement various price stabilization measures, and take necessary actions in a timely manner to maintain stable consumer prices. Prices are expected to rise moderately in the second half of the year, and the full-year CPI year-on-year increase is forecast to be below 2%. (Editor: Lin Shuyuan) 1150606
FAQ
What is the main reason for the May CPI increase in Taiwan?
The low base effect of fuel costs last year and short-term weather factors like heavy rain.
What is the Taiwanese government doing to stabilize prices?
Measures include CPC Corporation's gasoline price freeze, agricultural production adjustments, and financial support for CPC.
What is the full-year inflation forecast for Taiwan this year?
The NDC forecasts the full-year CPI increase to be below 2%.