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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 DGBASTaiwan'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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US Markets22d ago

Taiwan Factory Expansion Accelerates in May on Tech Goods

The precautionary stockpiling of goods by customers drove a solid expansion in production by Taiwan manufacturers in May, reported S&P Global on Monday.Taiwan's manufacturing purchasing managers index (PMI) rose to a seasonally adjusted 56.1 in May, up from 55.3 in April, and striking further above the 50-mark that separates growth from contraction, reported S&P Global, citing its monthly survey.Despite Persian Gulf turmoil, Taiwan's factory-sector business "conditions have now strengthened in each of the past six months," said S&P Global. "Helping to push up the headline PMI figure was a stronger increase in output during May. Taiwanese manufacturers recorded the steepest increase in production since July 2021."The uncertain global economy did not appear to hamper the trade-oriented Taiwan's prospects in May.Taiwan manufacturers reported that "new export orders meanwhile rose at a solid pace that matched that seen in April, with higher demand reported across key markets such as the US, Europe, Japan and mainland China," reported S&P Global.However, Taiwan factory managers in May were stretching to source inputs, and keep production floors supplied. "The latest survey pointed to greater strain on supply chains, with average lead times for inputs lengthening at... most pronounced pace since March 2022," said S&P Global. "There were frequent reports that shipping delays and product shortages amid the war in the Middle East had weighed on supplier performance."Higher operating and input costs triggered compensatory price hikes by Taiwanese industrialists in May. "In order to protect their margins, manufacturers in Taiwan raised their selling prices again in May," explained S&P Global.In addition, Taiwan factory managers, in part to hold down costs, did not add to payrolls in in May, reported S&P Global.There were some concerns that demand for Taiwan manufactured product could cool in months ahead, once customers have enough buffer stocks built up. The "current momentum could soon fade once inventories are replenished, especially if cost pressures continue to build," advised S&P Global.Nevertheless, Taiwan's manufacturers in May were confident in the 12-month outlook. "There were hopes that further increases in customer demand, particularly in areas such as electronics and AI, could help to boost production in the months ahead," said S&P Global.The Taiwan manufacturing PMI was compiled by S&P Global survey sent to 300 manufacturers from May 12 through May 20.

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Taiwan Inflation Rates Churn in May on Energy Bills

Taiwan Factory Expansion Accelerates in May on Tech Goods

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