In June 2025, Taiwan's annual inflation rate decelerated for the third month in a row, reaching 1.37%, down from 1.55% in May. This represents the lowest inflation rate since March 2021. Contributing to this slowdown were moderating price increases in several categories: food costs rose 2.82% compared to 3.1% in May, housing increased by 1.76% versus 1.8%, education and entertainment went up by 0.6% against 1.2%, and miscellaneous goods and services ascended by 2.21% as opposed to 2.4%. Additionally, clothing prices saw a sharper decline at -0.87%, following a -0.6% decrease previously. Meanwhile, the reduction in costs for transportation and communication eased slightly, with deflation rates at -1.36% compared to -1.6% earlier. On a month-over-month basis, adjusted for seasonal variations, consumer prices inched up by 0.01% in June 2025, recovering from a 0.14% drop in the prior month.