Central Bank: Middle East Conflict Causes Import Prices to Rise, Imported Inflation Pressure Controllable
The Central Bank reported that the conflict in the Middle East has driven up import prices, but due to the appreciation of the New Taiwan Dollar, the pressure of imported inflation remains controllable. The Central Bank continues to manage the exchange rate to stabilize prices.
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- 📰 Published: April 10, 2026 at 19:22
- 🔍 Collected: April 10, 2026 at 20:00 (38 min after Published)
- 🤖 AI Analyzed: April 20, 2026 at 06:31 (226h 31m after Collected)
The Legislative Yuan's Finance Committee is scheduled to invite relevant ministries to give a special report on 'The medium- to long-term impact and countermeasures of the Middle East conflict on energy, prices, livelihoods, and medical supplies, and the implementation of the special budget for strengthening economic, social, and livelihood national security resilience in response to international situations.' The Central Bank's written report was released today.
The Central Bank pointed out that due to disruptions from the Middle East conflict, international crude oil and other commodity prices have risen, increasing global inflation risks. Major international organizations have warned of the severe energy crisis situation, urging prudent responses to potential impacts.
Domestically, the Central Bank stated that the Middle East conflict has pushed up the costs of imported raw materials and goods, leading to rising domestic import prices. From January to March this year, import prices in USD increased by 4.31% year-on-year. However, due to the appreciation of the New Taiwan Dollar against the US Dollar compared to the same period last year, the increase in import prices denominated in NT dollars has narrowed to 0.33%, indicating that the imported inflation pressure remains controllable.
The Middle East conflict has also affected financial markets. Since the end of February, market risk aversion has increased, the international US dollar has strengthened, and the New Taiwan Dollar has depreciated against the US Dollar. The Central Bank statistics show that since February 28th, the New Taiwan Dollar has depreciated by 1.50% against the US Dollar compared to before the conflict (February 27th). This depreciation is moderate compared to other major currencies.
The Central Bank also pointed out that its intervention in the foreign exchange market to stabilize the New Taiwan Dollar exchange rate is not only beneficial for import/export businesses in pricing and operational planning and reducing hedging costs but also helps to alleviate imported inflation pressure and curb rising domestic inflation expectations.
Observing the current domestic price situation, the Central Bank believes that with the government's supply-side measures to stabilize domestic prices, the average Consumer Price Index (CPI) year-on-year growth rate from January to March this year was 1.23%, indicating that inflation remains mild.
In March this year, the Central Bank revised its forecast for Taiwan's annual CPI growth rate upwards by 0.17 percentage points to 1.80%, from the 1.63% forecast in December last year. This revision is mainly due to the effects of rising oil prices and the government's energy price stabilization measures (including a special delayed price increase mechanism and an expanded reduction in fuel tax).
The Central Bank stated that if international oil prices rise significantly in the future, the upside risk for the domestic inflation outlook will also increase. However, the extent of the impact will depend on the duration, intensity, and geographical scope of the conflict. In addition, international geopolitical risks and weather factors are the main uncertain factors affecting the future inflation trend in Taiwan.
Looking ahead, the Central Bank will closely monitor changes in the Middle East conflict situation, adopt appropriate monetary policy responses, and stabilize the exchange rate to mitigate the impact of rising international raw material prices on domestic prices. (Editor: Lin Shu-yuan) 1150410
The Central Bank pointed out that due to disruptions from the Middle East conflict, international crude oil and other commodity prices have risen, increasing global inflation risks. Major international organizations have warned of the severe energy crisis situation, urging prudent responses to potential impacts.
Domestically, the Central Bank stated that the Middle East conflict has pushed up the costs of imported raw materials and goods, leading to rising domestic import prices. From January to March this year, import prices in USD increased by 4.31% year-on-year. However, due to the appreciation of the New Taiwan Dollar against the US Dollar compared to the same period last year, the increase in import prices denominated in NT dollars has narrowed to 0.33%, indicating that the imported inflation pressure remains controllable.
The Middle East conflict has also affected financial markets. Since the end of February, market risk aversion has increased, the international US dollar has strengthened, and the New Taiwan Dollar has depreciated against the US Dollar. The Central Bank statistics show that since February 28th, the New Taiwan Dollar has depreciated by 1.50% against the US Dollar compared to before the conflict (February 27th). This depreciation is moderate compared to other major currencies.
The Central Bank also pointed out that its intervention in the foreign exchange market to stabilize the New Taiwan Dollar exchange rate is not only beneficial for import/export businesses in pricing and operational planning and reducing hedging costs but also helps to alleviate imported inflation pressure and curb rising domestic inflation expectations.
Observing the current domestic price situation, the Central Bank believes that with the government's supply-side measures to stabilize domestic prices, the average Consumer Price Index (CPI) year-on-year growth rate from January to March this year was 1.23%, indicating that inflation remains mild.
In March this year, the Central Bank revised its forecast for Taiwan's annual CPI growth rate upwards by 0.17 percentage points to 1.80%, from the 1.63% forecast in December last year. This revision is mainly due to the effects of rising oil prices and the government's energy price stabilization measures (including a special delayed price increase mechanism and an expanded reduction in fuel tax).
The Central Bank stated that if international oil prices rise significantly in the future, the upside risk for the domestic inflation outlook will also increase. However, the extent of the impact will depend on the duration, intensity, and geographical scope of the conflict. In addition, international geopolitical risks and weather factors are the main uncertain factors affecting the future inflation trend in Taiwan.
Looking ahead, the Central Bank will closely monitor changes in the Middle East conflict situation, adopt appropriate monetary policy responses, and stabilize the exchange rate to mitigate the impact of rising international raw material prices on domestic prices. (Editor: Lin Shu-yuan) 1150410