Taiwan’s annual inflation slowed to 2.54% in July 2026 from 2.6% in June, marking the first deceleration in five months but remaining above market expectations of 2.4%. It also stayed above the central bank’s 2% target for a third straight month, as renewed tensions in the Middle East kept global energy prices elevated.
The overall moderation was mainly driven by weaker price growth for commodity goods (2.32% vs. 2.49%) and housing (2.20% vs. 2.32%), although clothing inflation inched up to 1.67% from 1.66%. In contrast, food inflation accelerated to 2.49% from 1.78%, its highest level since September 2025. Services inflation also quickened, rising to 2.85% from 2.57%, with faster price increases recorded in transport and communication (4.14% vs. 2.72%), health (0.97% vs. 0.76%), and education and entertainment (3.60% vs. 3.22%).
On a monthly basis, consumer prices increased by 0.18% in July, the smallest gain since the start of the year, following a 0.21% rise in June.
