Taiwan's inflation rate hits four-month high

Taiwan's annual inflation rate in 2024/6 rose to 2.42% from 2.24% the previous month.

Prices for food (4.16%, up from 3.43% in May), education/entertainment (1.67%, up from 1.56%), and health (3.78%, up from 3.45%) accelerated, leading to a high inflation rate since February.

Meanwhile, housing (2.27% vs. 2.32%) and miscellaneous expenses (2.08% vs. 2.43%) moderated, but transportation and communication (0.91%) remained flat.

On a seasonally adjusted month-on-month basis, consumer prices rose 0.26% in June, and accelerated from a 0.17% increase in the previous month.

Source: Taiwan Budget, Accounting and Statistics Bureau

Taiwan's inflation rate is expected to reach 3.20% by the end of this fiscal year. Over the long term, according to our econometric model, Taiwan's inflation rate is predicted to be around 2.70% in 2025.