What is Taiwan's CPI target for this year?

The NDC expects full-year CPI growth to remain around 2%, and slight overshoots are acceptable given strong economic performance.

How does the Middle East situation affect Taiwan's prices?

Easing tensions have lowered global oil prices, reducing import costs and helping stabilize domestic inflation.

Why is Taiwan's economic growth so high?

Taiwan's strong global position in semiconductors and proactive industrial policies have driven export-led high growth.

What is the relationship between price and wage growth?

The government emphasizes that wages should rise alongside moderate inflation to maintain purchasing power.

How do SMEs benefit from this economic policy?

The government is expanding semiconductor-led economic gains to SMEs and service sectors through targeted policies.

Yeh Chun-hsien: Full-Year CPI Growth Expected to Stay Around 2%, Moderate Price Increases to Become the Norm

Published Jun 17, 2026 9:35 PM ・ Updated Jun 27, 2026 7:20 PM ・ 5 min read ・ Source: CNA (Central News Agency)

Taiwan's National Development Council (NDC) Minister Yeh Chun-hsien stated that easing Middle East tensions and effective government measures are expected to keep full-year CPI growth around 2%, with moderate price increases becoming a normal trend amid strong economic growth.

By Central News Agency Reporter Pan Tzu-yu, Taipei, June 17

National Development Council (NDC) Minister Yeh Chun-hsien stated today that the gradual easing of Middle East tensions is helping to alleviate inflationary pressures. Combined with the government's effective source-level management policies, the full-year Consumer Price Index (CPI) growth rate is expected to remain around 2%, with prices showing a moderate upward trend.

Speaking to the media, Yeh noted that while the preliminary agreement between the U.S. and Iran requires continued monitoring, both nations have urgent reasons to end the conflict. The U.S. faces election pressures, while Iran's weak domestic economy and rising inflation create strong incentives for a swift resolution. Thus, the Middle East situation is expected to move in a positive direction.

Domestically, the Directorate-General of Budget, Accounting and Statistics (DGBAS) recently reported that May's CPI rose 2.2% year-on-year, surpassing the 2% threshold and raising public concerns about inflation. However, Yeh explained that the May increase was partly due to base effects. Overall, the government's strategy of managing imported inflation at the source has been effective. Moreover, international oil prices have significantly declined following the U.S.-Iran preliminary agreement.

Looking ahead, Yeh believes that as Middle East tensions ease, full-year CPI growth can be maintained around 2%. Even if CPI slightly exceeds 2%, it would still be acceptable, given Taiwan's robust economic performance. Last year's GDP growth reached 8.76%, and DGBAS forecasts this year's growth at 9.64%. 'It wouldn't be reasonable to expect prices to remain completely stagnant amid such strong economic performance,' Yeh remarked.

Yeh emphasized that moderate price increases will become the norm as long as the economy grows steadily. At the same time, wages must also rise. The government continues to implement policies to ensure that the economic benefits from the semiconductor supply chain spread to other sectors, particularly the service industry and small and medium-sized enterprises. (Edited by Yang Lan-hsuan) 1150617

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Source: CNA (Central News Agency)
Category: Taiwan

Yeh Chun-hsien: Full-Year CPI Growth Expected to Stay Around 2%, Moderate Price Increases to Become the Norm

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