Taiwan’s consumer price index rises to 2.29% in March

台灣3月消費者物價指數上漲2.29%

7-month high for key inflation indicator with fruit prices rising and concerns over Trump’s tariffs


TAIPEI (Taiwan News) – The consumer price index rose to 2.29% in March, its highest level in seven months, the government said Tuesday.

Directorate General of Budget, Accounting and Statistics specialist Tsao Chih-hung (曹志弘) said Trump’s tariffs may increase prices for imported consumer goods but will suppress global economic activity and weaken demand as raw material prices are expected to fall, per CNA.

Tsao said raw material prices, such as oil, are weighted in the CPI and are a major cost for many industries. After Trump’s tariffs were announced, international oil prices fell below NT$2,312 (US$70) per barrel. As Taiwan is highly dependent on imported raw materials, falling raw material prices will alleviate inflationary pressure.

According to Tsao, new tariffs would not increase the risk of stagflation (high inflation and stagnant economic growth). However, CPI has risen above the government’s target of 2% and is significantly higher than February's 1.58%.

In March, food prices jumped 4.9% as fruit production continued to be affected by typhoons and flooding last year. Vegetable, cooking oil, meat, and fishery item prices also increased 5.12%, 4.21%, 3.87%, and 3.1%, respectively.

The CPI report also showed that restaurant prices climbed 3.26% compared to the same month a year earlier. This was the fifth straight months prices increased over 3% in the food service sector.

Housing costs also continued to increase, with rental prices increasing 2.49%. One notable exception for consumers was egg prices, which dropped 12.32% from last year's levels.