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Taiwan Inflation Rates Churn in May on Energy Bills

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Taiwan Inflation Rates Churn in May on Energy Bills

Taiwan's consumer and producer prices churned higher in May, spurred by increases in food and energy bills, reported the island nation's Directorate-General of Budget, Accounting and Statistics (DGBAS) on Friday.

Taiwan's consumer price index (CPI) rose 2.20% on year in May, following a 1.74% on-year gain in April, largely pushed by energy bills and higher vegetable prices, reported DGBAS.

The nation's CPI rose 0.19% in May from April, although that eased from the 0.46% on-month gain in April from March. The April spurt was caused by surging fuel bills.

Taiwan's CPI-core, which strips out fruits, vegetables and energy bills, rose 2.12% in May on year, edging up from a 1.90% rise in April, added DGBAS.

Taiwan's producer price index (PPI) lept 14.11% in May on year, "mainly because the indices for petroleum and coal products," said DGBAS.

On month, the May PPI declined marginally from April, on slightly easing crude prices.

For the first five months of 2026, the PPI rose 4.90% over the same period of 2025.

Producer prices are considered one precursor to subsequent movements in the CPI, as retailers try to pass on higher costs to shoppers.

Taiwan's import price index (IPI) in May rose 17.21% from a year, and rose 2.49% from April, reported DGBAS.

For the first five months of 2026, the IPI rose 9.26% over the same period of 2025.

And the nation's export price index (EPI) rose 18.09% on year in May, and gained 0.17% from the previous month, due in part to higher prices for semiconductors and other tech goods.

For the first five months of 2026, the EPI rose 13.36% over the same period of 2025, according to DGBAS

Taiwan's central bank does not have an explicit inflation target, but bank literature points to annual increases in the CPI of below 2% as desirable, and the monetary authority tends to target a zone of 1.5% to 2% inflation.

The next policy session of Taiwan's central bank is scheduled for June 18.

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